TMI Blog2017 (11) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... uld give reasonable opportunity of being heard to the assessee before finalizing the assessment order.In the result the appeal is allowed for statistical purposes. - ITA No.646/MUM/2016 - - - Dated:- 25-9-2017 - SHRI MAHAVIR SINGH (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) For The Revenue : Shri Suman Kumar, DR For The Assessee : None ORDER PER N.K. PRADHAN, A.M. This is an appeal filed by the Revenue. The relevant assessment year is 2007-08. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-44, Mumbai and arises out of the assessment completed u/s 143(3) r.w.s 147 of the Income Tax Act 1961, (the Act ). 2. The ground raised by the Revenue in this appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lling to ₹ 61,97,722/- to M/s Vir Sons. Then, the AO took into account the statement given by Shri Rejendra Jain during the course of search and seizure action u/s 132 on 03.10.2013 and arrived at a finding that Shri Jain directly or indirectly controlled various business concerns such as M/s Vitrag Jewels, Prop. Shri Mudit P. Karnawat (Ex-employee). Taking into account the above facts, the AO asked the assessee to produce Shri Karnawat for examination to prove the genuineness of transaction. The assessee failed to produce Shri Karnawat. The AO came to a finding that since the party is now assessee s witness, he ought to have produced Shri Karnawat. But he failed to do so. As the genuineness of transaction was not proved, the AO made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in. Ans. Sir, we are operating through a no. of business concerns of all the three nature i.e. proprietorship firm, partnership firm as well as companies in the name of various persons including our employees. But for all practical purposes, myself and Shri Surendra Jain are handling the entire business network on profit sharing basis. The name wise detail of all business concern of ours is as follows: - Proprietorship firm Name of Proprietor a. AVI Exports Rajendra S Jain (myself) b. Kalash enterprises Manish Jain c. AadiImpex Anoop Jain d. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat we are merely lending names of our various concerns to the real importers of diamonds who takes the actual delivery of diamonds. A reading of the above statement shows Shri Jain has admitted that they are engaged in the business of bills shopping through the above concerns. It is the duty of the AO to enforce attendance of a witness if his evidence is material. At the same time the assessee must furnish the complete address of such person. A proper hearing must always include a fair opportunity to those who are parties in the controversy for correcting or contradicting anything prejudicial to their view. Cross-examination is allowed by procedural rules and evidently also by the rules of natural justice. Any witness who has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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