2017 (10) TMI 772 - ITAT MUMBAI

Revision u/s 263 - unexplained bogus purchases - inadequate or no enquiry - Held that:- Assessing Officer has not gone into the aspects, as has been observed in the impugned order and the information received from the investigation wing was not properly investigated. It is also noted that the Ld. Assessing Officer did not make any enquiry with respect to remaining four parties from where the assessee claim to have made bogus purchases amounting to ₹ 2,30,89,345/-. It is also noted that these parties filed an affidavit before the Sales Tax Authorities that they were involved in bogus transactions/bogus sales, without effecting the actual delivery of goods. The assessee also did not produce these parties for examination to the satisfaction of the Assessing Officer. The Ld. Assessing Officer without making any enquiry with respect to these parties simply accepted the claim of the assessee, meaning thereby, the Ld. Assessing Officer mechanically accepted the claim of the assessee without application of mind or due enquiry, therefore, certainly the assessment order is erroneous as well as prejudicial to the interest of Revenue, causing loss to the Revenue. The Ld. Assessing Officer was expected to make detailed enquiry into the matter, which was not done.

Totality of facts, clearly indicates that the assessment order has been framed without full enquiries, therefore, the ld. Commissioner justifiably invoked revisional jurisdiction.

Commissioner has merely directed the Assessing Officer to make proper enquiries and after affording opportunity to the assessee decide in accordance with law, therefore, principally; the assessee should not feel aggrieved, because, if the assessee is in a position to explain the factual matrix, no grievance will be caused to the assessee. At the same time, the mandate of Article 265 of Constitution of India is to levy and collect due taxes. In view of this factual matrix, we affirm the stand of the ld. Commissioner. - Decided against assessee.