TMI Blog2018 (5) TMI 2106X X X X Extracts X X X X X X X X Extracts X X X X ..... of the sale instead of depending solely on the statement of the Rajendra Jain Group. In view of the same, we deem it fit and proper to remit the issue to the file of the AO for verification of the documents filed by the assessee and if it is found that the payment has been made by the assessee through banking channels and the purchases and sales have also been recorded in the books and the net profit has been offered to tax, then there cannot be any disallowance of the purchases. Appeal of the assessee is treated as allowed for statistical purposes. - ITA No.2016/Hyd/2017 (Assessment Year: 2013-14) - - - Dated:- 25-5-2018 - Smt. P. Madhavi Devi, Judicial Member AND Shri B. Ramakotaiah, Accountant Member For Assessee : Shri P. Mural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s i.e. Karnavat Impex Pvt. Ltd for an amount of ₹ 13,56,150 and Sun Diam for an amount of ₹ 11,35,000. He observed that these two companies are operated and managed by Rajendra Jain Group and that the statement recorded from the key persons of the said group also confirmed that the above companies were controlled and managed by them and that they are not doing any real trading in Diamonds but only indulged in paper transactions. The AO afforded an opportunity of cross examination to the assessee before us. Summons u/s 131 was also issued by the AO to the Director of the company. One of the Director of the company, in response to the said notice, appeared and stated that the transactions are all genuine and recorded in the books ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee company has already submitted original purchase invoices, stock registers and bank statements before the A.O in support of purchases. 7. The Ld. CIT (A) ought to have appreciated the fact that the material found during the course of search and seizure operation does not belong to the appellant and the same is dumb material which cannot be relied upon 8. The Ld. CIT (A) ought to have appreciated the fact that the A.O had not doubted genuineness of sales and such sales cannot be made without purchases which were wrongly held to be bogus. 9. The Ld. CIT (A) ought to have considered the fact that the assessee has already submitted all the details pertaining to the two suppliers in question i.e., PAN, Addresses, contact number ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Karnavat Impex Private Ltd and also from Sun Diam which are placed at pages 77 to 80 of the paper book and also the bank statement reflecting the payments made to these companies by RTGS. He has also drawn our attention to the sales invoices regarding these goods. He submitted that all these details were submitted both before the AO as well as the CIT (A), who failed to verify these documents but have made the additions and confirmed the addition merely on suspicion and surmises. In support of his contention that such disallowances cannot be made, he placed reliance upon the following decisions: i) Hon'ble High Court of Gujarat in the case of CIT vs. Bholanath Poly Fab (P) Ltd reported in 40 Taxmann.com 494 ii) Hon'ble High Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
