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2018 (8) TMI 1181 - ITAT MUMBAIReopening of an assessment beyond 4 years - issue of bogus purchases - AO estimated the Gross Profit on such alleged bogus purchases at the rate at which the assessee has shown the Gross Profit. - information was unearthed during the course of search in the case of other party - Held that:- When there is a specific and concrete information available with the Assessing Officer after completion of assessment, there is certainly reason to believe that the income had escaped assessment and therefore we do not see any infirmity in the order of the Assessing Officer in reopening the assessments. We also find that there is no considerable force in the submissions of the Ld. Counsel for the assessee that the basis for making of addition is not adhered to. - Reassessment proceedings sustained - Decided against the assessee. Bogus Purchases - Estimation of income - The Revenue came to know that the Bhanwarlal Jain Group was issuing the accommodation entries to various parties through different entities. - Held that:- statements reflecting payments made by the assessee to them, copy of acknowledgment of Income Tax Returns filed by them to show that the transaction of sales made to the assessee are genuine. We also find that the Gross Profit margin shown by the assessee is ranging in between 7.02% to 7.62% consistently. Further, the disallowance / estimation of profit of purchases by treating them as bogus cannot be made only on the statements recorded from third parties, especially when the suppliers have responded to the notice u/s. 133(6) of the Act and filed all the necessary documents to prove the genuineness of the purchases made by the assessee. - All the purchases are genuine - No adition can be made - Decided in favor of assessee.
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