Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

Income Tax Officer, Kolkata Versus Saraf Jewels & Co, Kolkata, And Vice-Versa

2017 (5) TMI 359 - ITAT KOLKATA

Reopening of assessment - bogus purchases - CIT(Appeals) in giving relief to the assessee by relying on the additional evidence without giving any opportunity to the Assessing Officer to verify the same - Held that:- Keeping in view all the submissions made by the assessee which are duly supported by the copies of submissions made by the assessee during the course of assessment proceedings before the Assessing officer and which are duly acknowledged by the Office of the Assessing Officer, find t .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t Member For The Department : Md. Ghayas Uddin, JCIT, Sr. D.R. For The Assessee : Shri S.M. Surana, Advocate and Shri Suni l Surana, FCA ORDER Per Shri P.M. Jagtap, A.M. . : This appeal is preferred by the Revenue against the order of ld. Commissioner of Income Tax (Appeals)-9, Kolkata dated 24.05.2016 and the same is being disposed of along with the Cross Objection f i led by the assessee being C.O. No. 52/KOL/2016. The only grievance of the Revenue as projected in the grounds raised therein is .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

-. The said return was initial ly processed by the Assessing Officer under section 143(1). Thereafter a search and seizure operation was conducted in the cases belonging to Bhanwarlal Jain Group. During the course of the said act ion, information was gathered by the Department about the accommodation entry of ₹ 12,98,396/- given to the assessee. On the basis of the said information, the Assessing Officer formed a belief that the income of ₹ 12,98,396/- of the assessee has escaped ass .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nd documents to prove that the purchases claimed to be made by it from M/s. Little Diam of ₹ 12,98,396/-, M/s. Vintage Jewel ls of ₹ 19,42,368/- and M/s. Sun Diam of ₹ 5,49,968/- were genuine and it was not a case of accommodation entry obtained by the assessee. According to the Assessing Officer, neither the assessee nor his Authorized Representative, however, appeared before him with any documents to prove the genuineness of purchases made from the said parties and kept on ch .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

onsidering the submissions made by the assessee as well as the material avai lable on record, the ld. CIT(Appeals) deleted the addition of ₹ 37,90,732/- made by the Assessing Officer on account of alleged bogus purchases for the fol lowing reasons given in paragraph no. 4.2 of his impugned order:- 4.2 In ground no. 3 to 5 the assessee has disputed the addition on merits. As per the AO the assesee has made bogus purchases for which bogus bi l ls were issued by Bhawarlal Jain Group. The AO i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

name of Bhawarlal Jain. The assessee submit ted and it cannot be presumed that the sellers belonged to Bhawarlal Jain group. It was further submitted that the purchase were al l entered into day to day stock register and were identifiable by the sale of the material with reference to such purchase and the remaining material which was not sold was identifiable in the closing stock. It was further submitted that day to day stock register was produced before the AO and the AO has not disputed the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the AO as bogus was made. The case of the assessee is covered by the judgement s in the case of Cannon Industries reported in 167 TTJ page 82(Adinath Industries reported in 252 ITR page 476 and Kashiram Textiles reported in 284 ITR page 61. Therefore the addition is deleted . 4. Aggrieved by the order of the ld. CIT(Appeals), the Revenue has preferred this appeal before the Tribunal on the fol lowing grounds: - (1) Ld. CIT(A)-9, Kolkata failed to consider the fact that the assessee never during .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

arguments of both the sides and also perused the relevant material available on record. The ld. D.R. has submit ted that suf f icient opportunity was specifically given by the Assessing Officer to the assessee during the course of assessment proceedings to establish the genuineness of the purchases claimed to be made from the three parties by producing relevant bi l ls, etc. , but the assessee failed to do so. He has invited my attention to the relevant portion of the assessment order to point o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessee for verification before the Assessing Of f icer. He has contended that the said bi l ls clearly constituted additional evidence f i led by the assessee for the f irst time before the ld. CIT(Appeals) and there is a clear violation of Rule 46A of the Income Tax Act, 1962 by the ld. CIT(Appeals) in giving rel ief to the assessee by relying on the said additional evidence wi thout giving any opportunity to the Assessing Officer to verify the same. 6. The ld. counsel for the assessee, on the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on received by the Assessing Officer was only relating to the al leged accommodation entry of purchases taken by the assessee to the tune of ₹ 12,98,396/-. He has submitted that the said purchase was made by the assessee from M/s. Little Dian and bi l ls for the same were submitted before the Assessing Officer on 18.03.2015 under letter dated 17.03.2015 (page 13 to 16 of the paper book). He has also pointed out from the copy of the said letter placed at pages no. 13 to 16 of the paper book .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version