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2021 (2) TMI 65 - ITAT JAIPURReopening of assessment u/s 147 - unverifiable purchases - 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 - Assessee argued there was only statement of third person on the basis of which the A.O. had reopened the case of the assessee - HELD THAT:- We are not included to accept the contention of the assessee as the information in this case was received by the A.O. from the Investigation Wing and the A.O. after examining the same had recoded reasons for reopening the assessment, we are of the view that the proceedings U/s 147 of the Act could be initiated on the basis of investigation report, in this respect, we draw strength from the decision in the case of Ankit Agrochem (P) Ltd. [2017 (12) TMI 1625 - RAJASTHAN HIGH COURT] wherein it was held that proceedings initiated U/s 147 of the Act on the basis of report received from DIT(Inv.) were valid. 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. Bogus purchases - rejection of books of accounts of the appellant by the assessing officer u/s 145(3) of the Act on account of alleged unverifiable purchases - CIT-A directing application of G.P. rate of 12% on declared turnover - HELD THAT:- The purchases made has been exported as it is and there is bill to bill tally of purchase and export. Photo copies of purchase bills has also been placed on record by the assessee. Therefore, according to us, 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 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 hance the same is directed to be deleted. - Decided in favour of assessee.
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