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TMI Blog2021 (3) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... w Gems Pvt. Ltd., held that the purchase of cut and polished diamonds by the assessee to be a bogus transaction and added the entire expenditure pertaining to the said transaction, under section 69C. In order to decide the issue arising in this appeal, it is relevant to analyze the provisions of section 69C. Thus, as per the provisions of section 69C of the Act, in case the assessee fails to explain the source of expenditure or part thereof to the satisfaction of the AO, such expenditure shall be considered as unexplained expenditure and be deemed to be income of the assessee. The documents of loans sanctioned by Merrill Lynch Wealth Management to the assessee are placed at Pages 41 45 of the paper book. From the aforesaid factual d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SHRI G.S. PANNU, PRESIDENT AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER Assessee by : Shri Nitesh Joshi, Advocate Shri P.P. Bhandari, CA Revenue by : Shri C.T. Mathew, Sr. AR ORDER PER BENCH The present appeal has been preferred by the assessee challenging the order dated 30th July 2021, passed under section 250(6) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (hereinafter referred to as the CIT(A) ) for the assessment year 2015 16. 2. In this appeal, the assessee has raised the following grounds: 1. The learned Commissioner of Income-tax (Appeals) erred in upholding the addition of ₹ 87,26,922/- u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings, the Assessing Officer (hereinafter referred to as the AO ), in order to verify the sundry creditors, issued summons and commission under section 131 of the Act in respect of certain entities. Out of these entities, one M/s. Artview Gems Pvt. Ltd., was based out of Surat. Accordingly, commission under section 131 of the Act was issued to the AO of the said entity in Surat. The AO of the said entity informed that the concerned officer was unable to serve the summons to M/s. Artview Gems Pvt. Ltd. as the said entity had left the place some two to three years back. In view of the above, the AO, vide order dated 29th December 2017, passed under section 143(3) of the Act, observed that income tax authorities at Surat could not locate t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act is not satisfied in the present case, as the assessee had sufficient funds for incurring the expenditure while purchasing the diamonds from M/s. Artview Gems Pvt. Ltd. The learned counsel further submitted that the AO did not consider various documents filed by M/s. Artview Gems Pvt. Ltd., sufficiently proving the existence of the said entity and the genuineness of transaction with the assessee. The learned counsel also submitted that the AO has not objected to similar purchase transactions from other entities. 7. On the other hand, Shri C.D. Mathews, learned Departmental Representative (hereinafter referred to as learned DR ), appearing for the Revenue, vehemently relied upon the orders passed by the AO and the CIT(A). 8. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under any head of income. 9. Thus, as per the provisions of section 69C of the Act, in case the assessee fails to explain the source of expenditure or part thereof to the satisfaction of the AO, such expenditure shall be considered as unexplained expenditure and be deemed to be income of the assessee. In the present case, the assessee made the payments of ₹ 43,97,377, on 10th March 2015 and ₹ 43,29,549, on 18th March 2015, to M/s. Artview Gems Pvt. Ltd. in respect of the diamonds purchased by the assessee. From the statement of account of the assessee issued by the HDFC Bank, a copy of which is placed at Page 27 of the paper book, it is evident that the assessee availed loans of ₹ 45,00,000 on 10th March 2015 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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