9911796707
TMI Blog2024 (12) TMI 976X X X X Extracts X X X X X X X X Extracts X X X X ..... ly M/s. Delight Diam Pvt. Ltd. In that way, the assessee is acted as a conduit for transferring money through his account. Revenue has failed to undertake any inquiry to prove that the assessee is operating as a conduit for transfer of money to various persons. The Revenue has also not disputed that the sales parties were bogus to buttress the arguments that the assessee is acting as a conduit for transfer of money. AO has held that the assessee has inflated the purchases by taking accommodation entries to reduce the legitimate tax liability (para 4.5 of the AO). If that is the case, the contention of the Assessing Officer cannot be accepted that, in order to sell goods worth Rs. 3.56 crores the assessee has inflated the purchases by Rs. 3.51 crores. Further, we find that there was a total of 10 transactions entered by the assessee with regard to the sale and purchase of goods. Thus keeping in view order of Grishma Hemanshu Mody [ 2023 (10) TMI 1473 - ITAT MUMBAI] and Siddheshwar Impex Pvt. Ltd [ 2024 (8) TMI 1500 - ITAT MUMBAI] wherein the issue of bogus purchases pertaining to M/s. Delight Diam Pvt. Ltd. involving Shri Deepak Babel have been adjudicated, we decline to interfere w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the Financial Year 2011-12, relevant to Assessment Year 2012-13. Before the Revenue Authorities, the Director of the company of M/s. Delight Diam Pvt. Ltd., Shri Deepak Babel affirmed that the company is engaged in providing accommodation entries and the transactions made by the assessee cannot be considered as genuine. The details of purchase of diamonds on various dates from M/s. Delight Diam Pvt. Ltd. are as under:- Sr. no Date Bill no. Amount 1. 05/01/2012 DDS/J/17 4658637.50 2. 06/01/2012 DDS/J/25 3936007.65 3. 09/01/2012 DDS/J/37 4988566.50 4. 06/02/2012 DDS/F/08 4623342.06 5. 07/02/2012 DDS/F/09 4946665.60 6. 08/02/2012 DDS/F/10 4163037.00 7. 01/03/2012 DDS/M/01 4833771.90 8. 02/03/2012 DDS/M/02 3021192.90 Total 3,51,71,221.11 4. All the above purchases were made by the assessee from 05.01.2012 to 02.03.2012 and the payments have been made through RTGS during the period from 15.03.2012 to 29.03.2012 as per the assessee's account in the books of M/s. Delight Diam Pvt. Ltd. It is pertinent that Shri Dipak Kailash Babel, Director of M/s. Delight Diam Pvt. Ltd., has categorically stated that all activities of purchase and sale of diamond were enacted only on paper and wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erns. The ld. DR referred to question Nos. 7, 8, 9, 11 and 12, wherein Shri Deepak Babel has categorically submitted that the company was involved in giving accommodation entry to various people on account of purchase and sales of diamonds by charging commission of 0.02% to 0.03%. The ld. DR further argued that the assessee has shown purchases of diamond worth Rs. 3.51 crores and since the director of M/s. Delight Diam Pvt. Ltd., Shri Deepak Babel himself has submitted that these are accommodation entry operations, hence the entire purchases proved to be bogus and liable to be taxed as per the Income-tax Act. The ld. DR also argued that the Assessing Officer was also given opportunity to the assessee to cross-examine Shri Deepak Babel, but the assessee himself has not turned up on the designated day on which the cross-examination has been provided to the assessee. Thus, the assessee has also failed to cross-examine the entry operator, and hence there was no reason to dispute the facts stated by the entry operator which can only raise to the conclusion that the assessee is involved in the bogus purchase of diamonds. 8. On the other hand, ld. Counsel for the assessee argued that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided and retracted the same on 28.03.2018 before the Revenue Authorities. This fact has not been considered by the Assessing Officer or mentioned anywhere in the proceedings taken up by the Revenue Authorities. Further, it is an undisputable fact that the assessee has received amounts from two entities, namely M/s. Isabelle Tours N Travels and M/s. Shreeji Overseas (I) Pvt. Ltd., against the diamonds sold. It cannot be expected that these two entities have paid amounts to the assessee without receiving any goods - whether it be diamonds or otherwise. Hence, such diamonds have been duly purchased from M/s. Delight Diam Pvt. Ltd. Even if the argument is considered, there were certain goods which were purchased by the assessee for Rs. 3.53 crores which in turn have been sold to two entities at Rs. 3.56 crores, then this leads to a situation where the Revenue has accepted the sales and, as a natural corollary, there have been purchases - whether from M/s. Delight Diam Pvt. Ltd. or any other parties. If there were no purchases, then there would be no corresponding sales; then the income of the assessee will be reduced as there is some margin towards the sales and purchase differenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs N Travels 09-01-2012 KC/11-12/03 226.65 4997632.50 85,89 Delight Diam P Ltd 06-02-2012 DDS/PD/FEB/ 08/2011-12 212.46 4623342.06 75 Shreeji Overseas(I) P Ltd 06-02-2012 KC/11-12/04 212.46 4631628.00 85,90 Delight Diam P Ltd 07-02-2012 DDS/PD/FEB/ 09/2011-12 242.96 4946665.60 76 Shreeji Overseas(I) P Ltd 07-02-2012 KC/11-12/05 242.96 4956384.00 85,91 Delight Diam P Ltd 08-02-2012 DDS/PD/FEB/ 10/2011-12 189.66 4163037.00 77 Shreeji Overseas(I) P Ltd 08-02-2012 KC/11-12/06 189.66 4172520.00 85,92 Delight Diam P Ltd 01-03-2012 DDS/PD/MAR /01/2011-12 231.78 4833771.90 78 Shreeji Overseas(I) P Ltd 01-03-2012 KC/11-12/07 231.78 4867380.00 85,93 Delight Diam P Ltd 02-03-2012 DDS/PD/MAR /02/2011-12 149.49 3021192.90 80 Shreeji Overseas(I) P Ltd 02-03-2012 KC/11-12/08 149.49 3034647.00 Total -A 1677.95 35380744.11 1677.95 35662659.00 281914.89 0.79 37,47 Opening Stock Opening Stock Opening Stock 89.22 1897832.00 85,94 Johri Sons Jewellers (P) Ltd 15-03-2012 0260 229.25 4825712.50 318.47 6723544.50 81 Shreeji Overseas(I) P Ltd 15-03-2012 KC/11-12/09 318.47 6719717.00 85,95 Johri Sons Jewellers (P) Ltd 15-03-2012 0267 300.88 6348568.00 79 Shreeji Overseas(I) P Ltd 15-03-2012 KC/11-12/10 300. ..... 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