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2017 (6) TMI 595 - ITAT PUNEReopening of assessment u/s 147 - Held that:- We find no merit in the ground of appeal No.1 raised by the assessee, where the original return of income filed by the assessee was processed under section 143(1) of the Act. Thereafter, on the basis of information received, the Assessing Officer had reason to believe that there was escapement of income and accordingly, recorded reasons for reopening the assessment under section 147 of the Act. Following the ratio laid down by the Hon'ble Supreme Court in ACIT Vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd. (2007 (5) TMI 197 - SUPREME Court) action of Assessing Officer is upheld and the ground of appeal No.1 raised by the assessee is dismissed. Addition by applying GP rate on the alleged bogus purchases - Held that:- Undoubtedly, the assessee has established the trail of goods but since the goods are purchased through hawala dealer, then margins of profit for such goods needs to be added in the hands of assessee. Following the decision in bunch of appeal in M/s. Chhabi Electricals Pvt. Ltd. Vs. DCIT (2017 (6) TMI 514 - ITAT PUNE ), the Assessing Officer is directed to apply GP rate of 10% on the goods purchased from hawala dealers, over and above the GP rate declared by the assessee.
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