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2021 (8) TMI 507 - AT - Income TaxBogus purchases - disallowance @3.55% of the alleged bogus purchases and working out average gross profit in erroneous manner - HELD THAT:- We note that even after noting that the payments are in multiple of large amounts with no relationship whatsoever with the invoice value, Ld.CIT(A) has not made any further investigation - examination of the bank statement and the concerned party ledger account shows that payments have a pattern of huge payments periodically and AO also has noted that time lag between payment is not in accordance with what is there in other account. The examination of the financials of the assessee shows that against an issued capital of ₹ 5 crores, there is share premium account of 57.6 crores. The assessee company also has received ₹ 35.48 crores share premium during the year also. There are loan and advances without detail of ₹ 25.36 crores and sundry debtor of ₹ 24.45 crores. CIT(A) has all these documents before him. The circular movement needed to be examined, when the addition made by the AO was in term of peak credit. It was incumbent upon Ld.CIT(A) to examine this aspect and in our considered opinion, the Ld.CIT(A) has erred in over looking these aspects. In our considered opinion, the interest of the justice demands that the issue be remitted to the file of Ld.CIT(A) to examine the issue, we note that in light our observations hereinabove. Accordingly, the issue is remitted to Ld.CIT(A). Needless to add, assessee should be granted adequate opportunities. Reopening of assessment u/s 147 - HELD THAT:- We have heard both the parties and perused the record. No separate argument was placed orally by Ld. Counsel of the assessee on this issue. We note Ld.CIT(A) has taken a correct view of the matter. On the facts and circumstances, it cannot be said that reassessment is a change of opinion here. It is trite that there has to be an opinion first only then there can be issue of change of opinion. Moreover it is also settled law that at the time of notice escapement need not be proved to the hilt. We agree with Ld.CIT(A) that AO had valid reason for reopening. The case laws referred by Ld.CIT(A) also germane. Appeals are allowed for statistical purpose.
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