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2019 (3) TMI 1958 - ITAT MUMBAIEstimation of income - Bogus purchases - CIT(A) for restricting the disallowance to 3% of the total value of the purchases - HELD THAT:- This Tribunal passed in assessee’s own case for the A.Y.2009-10, 2010-11, 2012-13 & 2013-14 [2019 (1) TMI 1961 - MADRAS HIGH COURT] wherein, the aspect of purchases made from suppliers belonging to Rajendra Jain Group have been the subject matter of adjudication as held assessee has explained that all its sales are by way of exports. The books of account maintained by the assessee show payment for effecting such purchases by account payee cheques and also the vouchers for sale and purchase of goods, etc. Notably, no independent enquiries have been conducted by the AO. AO was not justified in making additions merely on the basis of information obtained from the Sales Tax Department of the Government of Maharashtra without conducting any independent enquiries. Before the CIT(Appeals), one of the points raised by the assessee was with respect to an opportunity to cross examine the four parties, but we find that no such opportunity have been allowed. Assessing Officer in the instant case has stated that Mr. Rajendra Jain, Mr. Dharmichand Jain and Mr. Anoop Jain have appeared before him. However, it is not made clear as to whether the above said three persons were partners/directors, all the suppliers belonging to Rajendra Jain. The purchases made from companies, where these three persons are either partner/director, shall be aware by the above said decision rendered by Coordinate Bench. The purchases made from other companies, however requires fresh examination. The aforesaid decisions rendered would apply mutatis mutandis to the case before us. Accordingly, we restore the issue relating to addition on account of bogus purchases made during the year under consideration to the file of the Ld. AO with a direction to delete the addition relating to purchases made from companies, in which above said three persons are partners / Directors. Appeals of the assessee as well as the revenue are allowed for statistical purposes
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