Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (2) TMI 27 - ITAT JAIPURReopening of assessment u/s 147 - information received by the A.O. regarding search operation conducted in the case of Jain Group of companies and information of which was available to the A.O - Bogus purchases - HELD THAT:- Reasons recorded or the material available on record must have nexus to the subjective opinion formed by the A.O. regarding the escapement of the income but then, while recording the reasons for belief formed, the A.O. is not required to finally ascertain the factum of escapement of the tax and in our view, it is sufficient for the A.O. in case he had cause or justification to know or suppose that income had escaped assessment. It is also well settled that the sufficiency and adequacy of the reasons which have led to formation of a belief by the A.O. that the income has escaped assessment cannot be examined by the Court. Therefore, in view of above discussion, we are of the view that the A.O. had specific information based on which and after recording of reasons and approval, the assessment has been reopened. Therefore, up uphold the decision on ld. CIT(A) on this ground and dismissed the ground raised by the assessee. Estimation of income - bogus purchases - rejection of books of accounts u/s. 145(3) on account of alleged unverifiable purchases - directing application of G.P. rate of 12% on declared turnover on this count - HELD THAT:- In view of difference in the circumstances, the results of this year i.e. A.Y. 2010-11 cannot be compared to the results of earlier year as the complete nature of business is changed from this year. In view of the above facts, the allegation of reducing profit by obtaining non-genuine bogus purchase bills is wrong and not sustainable. There is increase in total gross profit and thus results can be held as progressive and therefore, in such circumstances, no additions are called for. Even the Coordinate Bench of Jaipur ITAT in assessee's own case [2020 (5) TMI 481 - ITAT JAIPUR] having similar facts, deleted the entire addition confirmed by the ld. CIT(A). Therefore, keeping in view the above facts and circumstances and discussion, we are also of the view that the additions confirmed by the ld. CIT(A) by applying G.P. rate of 12% as against the declared G.P. rate of 9.34% is uncalled for and bad in law and deserves to be deleted and hence the same is directed to be deleted.
|