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2018 (12) TMI 1910 - ITAT SURATReopening of assessment u/s 147 - Addition of bogus purchases - CIT(A) restricted profit element involved in its modus operandi at 12.50% of the alleged bogus purchases - HELD THAT:- According to the formation of belief, the assessee has availed unsecured loans from concerns of Shri Bhanwarlal Jain. However, while passing assessment order, it revealed to the AO that loans were not availed by the assessee. The assessee in its objection has been contended that he has no concern with Shri Bhanwarlal Jain. He is a commission agent who purchased and sold goods on behalf of principal on commission basis and account only commission in the profit & loss account. AO has neither transmitted the information received by him to the assessee nor considered while disposing of the objection filed by the assessee. As before the ld.CIT(A), the assessee has raised specific objection about formation of belief vis-à-vis information available to the AO. CIT(A) has also not dealt those objection of the assessee. CIT(A) observed that AO got information from the investigation wing, Mumbai indicating that the assessee was beneficiary of accommodation entry from entry operators. In our opinion, this is a general statement instead of considering exact nature of issue contested by the assessee. The assessee has contended that reopening was made on account of availing unsecured/unexplained loans, whereas the addition was made on account of bogus purchases. There is a vast difference in-between both these aspects. CIT(A) has not dealt with this aspect. Therefore, we are of the view meaning of expression “and also” employed in section 147 of the Act, reopening of the assessment in the present case is not sustainable. We allow this ground of appeal and quash the reassessment order - Decided in favour of assessee.
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