TMI Blog2017 (8) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... zed for its printing/publishing business, there is always possibility of deflating/suppressing profits by obtaining bogus bills unless utilization/consumption is proved. Under these circumstances keeping in view factual matrix of the case, both the parties fairly agreed that the matter needs to be set aside and restored to the file of the A.O. for de novo determination of the issue on merits in accordance with law - Matter remanded back. - I.T.A. No. 5003/Mum/2016 - - - Dated:- 16-8-2017 - SHRI JOGINDER SINGH, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Revenue : Shri V Justin For The Assessee : Shri Pritesh Mehta ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the Revenue, being ITA No. 5003/Mum/2016, is directed against the appellate order dated 3rd May, 2016 passed by learned Commissioner of Income Tax (Appeals)- 32, Mumbai (hereinafter called the CIT(A) ), for assessment year 2009-10, appellate proceedings before learned CIT(A) arising from the assessment order dated 16.03.2015 passed by learned Assessing Officer (hereinafter called the AO ) u/s 143(3) r.w.s. 147 of the Income-tax Act, 1961 (hereinafter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Manav Impex 1,56,999 2 Kamlesh Trading Co. 7,42,040 3 Naman Enterprises 9,80,980 4 Ankit Enterprises 34,39,800 5 Coral Trading Co. 3,01,000 6 Adarsha Trading Company Pvt. Ltd. 11,13,216 TOTAL 67,34,035 Based upon the said information, the A.O. had reason to believe that income of the assessee had escaped assessment and the case was re-opened u/s 147 of the 1961 Act. Notice u/s 148 of the 1961 Act was issued by the AO on 25th March, 2014 which was duly served on the assessee on 31-03-2014, which was within four years from the end of the assessment year. The assessee in reply to notice dated 25-03-2014, submitted copy of return for the assessment year 2009-10. Notices u/s 143(2) and 142(1) of the 1961 were also issued by the AO. Thereafter, notice u/s 133(6) of the Act was issued by the AO to the above parties but the same were n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue here and hence these alleged purchase were not being treated as bogus until specific information is not received from the sales tax department. It is evident that the assesse has not purchased goods from these dealers, but it is also true that the goods have in fact somehow entered in the assessee's regular business premises. However the assessee has been unable to give any convincing and cogent explanation. As to how, these goods happened to come in their possession. The assessee has thus incurred expenditure on such purchases which he has failed to fully explain with documentary evidences. The A.O. accordingly came to conclusion that the assessee failed to prove the genuineness of the purchases made, the entire purchases were treated as bogus and AO made an addition of ₹ 67,34,035/-, vide assessment order dated 16-03-2015 passed by the AO u/s 143(3) r.w.s. 147 of the 1961 Act. 4. Aggrieved by the assessment order dated 16-03-2015 passed by the A.O., the assessee carried the matter in appeal before the ld. CIT(A) and the ld. CIT(A) after considering the submission of the assessee restricted the additions w.r.t. bogus purchases to the tune of 12.5% of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout supplying actual material. The Investigation wing, Mumbai forwarded to the AO the list of beneficiaries who have taken accommodation entry, purchase bills without physical delivery of the goods or by manipulating documents for such purchases. The assessee was listed as one of the beneficiaries who have taken accommodation bills for purchases from the following concerns:- Sr No. Name of the concerns Amount 1 Manav Impex 1,56,999 2 Kamlesh Trading Co. 7,42,040 3 Naman Enterprises 9,80,980 4 Ankit Enterprises 34,39,800 5 Coral Trading Co. 3,01,000 6 Adarsha Trading Company Pvt. Ltd. 11,13,216 TOTAL 67,34,035 Based upon the said information, the A.O. had reason to believe that income of the assessee had escaped assessment and the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issue on merits in accordance with law, wherein the assessee shall prove the utilization/consumption of said material for printing/publishing business of the assessee as also to prove genuineness of the purchase transaction. The assessee is directed to produce all relevant and cogent evidences before the AO to prove that the material allegedly purchased by the assessee from these hawala entry providers had been utilized/consumed for the purpose of its business of printing/publishing and to prove genuineness of the purchase transaction. The AO is directed to provide proper and adequate opportunity of being heard to the assessee in denovo set aside proceedings in accordance with principles of natural justice in accordance with law. The AO is also directed to admit all necessary and relevant evidences and explanation submitted by the assessee in set aside proceedings before the AO. At this stage we are reminded of the latest decision of Hon ble Supreme Court in the case of N. K. Proteins Ltd. v. DCIT (2017-TIOL-23-SC-IT). The appeal filed by the Revenue is, therefore, allowed for statistical purpose. We order accordingly. 9. In the result, appeal of the Revenue in ITA No. 5003/Mum/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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