9911796707
TMI Blog2021 (3) TMI 1340X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment year 2015-16. 2. In this appeal, the assessee has raised the following grounds:- "1. The learned Commissioner of Income-tax (Appeals) erred in upholding the addition of Rs. 87,26,922/- under section 69C of the Act. It is submitted that the appellant had made payment through account payee cheques from its regular bank account of the business. The appellant had discharged its onus of proving the genuineness of the transactions together with source of the expenditure as such addition made under Section 69C of the Act is bad in law and ought to be deleted. 2. The learned Commissioner of Income-tax (Appeals) erred in upholding the additions of Rs. 87,26,922/- made on account of purchase from M/s. Artview Gems Private Limited hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k. In view of the above, the AO, vide order dated 29th December 2017, passed under section 143(3) of the Act, observed that income tax authorities at Surat could not locate the office of the said entity at both the addresses i.e., the address provided by the assessee and the address mentioned on the return of income filed by the entity. The AO, doubting the existence of the said entity, noted that despite being untraceable at Surat, the entity filed the required details in the office of the AO at Mumbai. The AO further noted that the purchase bills regarding sale of cut and polished diamonds did not have any description about - (i) caratage along with the size of diamonds; (ii) clarity and (iii) colour of diamond; necessary to arrive at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Representative (hereinafter referred to as "learned DR"), appearing for the Revenue, vehemently relied upon the orders passed by the AO and the CIT(A). 8. We have considered the rival submissions and perused the material available on record. In the present case, the assessee being in the business of manufacturing of jewellery required cut and polished diamonds as an essential material. The assessee purchased the diamonds from various entities as is evident from extracts of stock register of the assessee forming part of the paper book. The A.O doubting the existence of only one entity, i.e. M/s. Artview Gems Pvt. Ltd., held that the purchase of cut and polished diamonds by the assessee to be a bogus transaction and added the entire expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of which is placed at Page-27 of the paper book, it is evident that the assessee availed loans of Rs. 45,00,000 on 10th March 2015 and Rs. 60,50,000 on 18th March 2015. The documents of loans sanctioned by Merrill Lynch Wealth Management to the assessee are placed at Pages-41 & 45 of the paper book. From the aforesaid factual details forming part of the paper book, which have also not been denied by the learned DR, it is evident that sufficient funds were available with the assessee for making the payment to M/s. Artview Gems Pvt. Ltd. for the purchase of diamonds. Thus, we are of the view that provisions of section 69C of the Act are not applicable to the facts of the present case. 10. Further regarding the apprehension / allegation of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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