9911796707
TMI Blog2020 (11) TMI 521X X X X Extracts X X X X X X X X Extracts X X X X ..... the whole re-assessment bad in law, that too after a gap of four years and also on the basis of borrowed satisfaction and without furnishing copies of the statements recorded by DG(Inv), Mumbai from those two suppliers. 2) In the facts and circumstances of the case and in law, the Assessing Officer erred in adding Rs. 15,42,185/- as alleged Accommodation bills being 100% of the total purchases amounting to Rs. 15,42,185/- and the Commissioner of Income Tax (A) erred in confirming 30%, i.e Rs. 4,62,655/-. a) Even though the payment for purchases is made from the books by A/C payee cheques and cannot be termed as non-genuine even though the same has been fully allowed by the jurisdictional Mumbai Tribunal in recent case of Rajeev M Kalath ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chases made are genuine. Not convinced with the submissions of the assessee the Assessing Officer treated the purchases as non-genuine and he was of the opinion that assessee had obtained only accommodation entries without there being any transportation of materials. It is the finding of the Assessing Officer since the purchases made by the assessee and claimed as expenses in his Profit and Loss Account are not genuine, the purchases to that extent remained unverifiable. Therefore, he treated purchases of Rs..15,42,185/- as non-genuine and added to the income of the assessee. On appeal the Ld.CIT(A) sustained the reopening of assessment and restricted to disallowance to 30% of alleged bogus purchases and sustained 70% of the addition made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the purchases made by the assessee from M/s. A2 Jewels and M/s. Kothari & Co. as non-genuine solely based on the information received from DGIT (Inv.), Mumbai that assessee has booked bogus purchases through one of the concerns which issued only accommodation entries. No independent enquiries have been conducted by the Assessing Officer before treating such purchases as bogus. The Assessing Officer has issued notice u/s. 133(6) of the Act to the dealers and M/s. A2 Jewels had responded to the same and confirmed sale of Rs..11,69,119/- to the assessee. 9. I find that more or less on identical issue has been decided by this Coordinate Bench in the case of M/s. Amy Diam Vega Jewellery Pvt. Ltd. v. DCIT in ITA.No. 5799 to 5801/Mum/2016 dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hom purchases were claimed to be made were operating from premises which were in the name of Bhanwarlal Jain & Family. The suppliers/ bogus parties could not be produced before the A.O for examination. The A.O therefore concluded that the appellant had merely received bills but not the material/goods from these parties. Though the appellant had shown corresponding sales against the purchases claimed, purchases were most likely made from grey market. Without bill and to adjust these transactions, bogus bills were obtained from Bhanwarlal Jain Group. The A.O concluded that the diamonds purchased from the grey market are cheaper than the diamonds sourced from genuine dealers. Subsequently there is an element of discount in the case of cash pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llan, it was submitted that the A.O completely ignored confirmation on the purchase bills by the appellant by signing on the face of the bill as is the practice in diamond trade. The allegation that the purchase is from grey market is based on presumptions and surmises. It was also contended that the estimation of gross profits @8% was quite high Reference was made to its own transfer pricing study report and the report of task group submitted in February 2013 presented to the Commerce and Industry Ministry. It was also submitted that all the impugned purchases are exported. Polished diamonds are purchased locally and exported. Further, that where H form is submitted, there is no levy of VAT and in the cases where VAT is levied, the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
