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2015 (4) TMI 552 - HC - Income TaxReopening of assessment - Bogus purchases - Held that:- The audited accounts coupled with the records submitted by the assessee go to establish that the purchase account was debited by an excess sum of ₹ 1,51,09,660/-. In seeking to explain, the assessee came out with a disclosure that it had purchased from J.J. Gold House 83 Kgs. of Gold and not 58 Kgs. of Gold. The total cost of gold purchased by the assessee furnished at the initial stage has remained unchanged. If the case of assessee is that he purchased 25 Kgs of gold in addition than what was shown originally from J. J. Gold House, then the total quantity purchased in the year has to be increased by 25 Kgs of Gold and that 25 Kgs of Gold should consequently be in the closing stock. Since the closing stock is nil a view could certainly be taken that the assessee had suppressed sale of 25 Kgs of Gold. But that does not change the original position. The original position remains the same. It transpired from the fact that the purchase account was inflated by a sum of ₹ 1,51,09,660/-. It is only on the basis of the case run by the assessee during the hearing of the appeal that the Commissioner of Income Tax held that if the case of the assessee in the appeal is true, then there should have been 25 Kgs of gold in the closing balance. Since the closing balance is nil there is suppression of sale of 25 Kgs Gold. Since the learned Tribunal was agreeing with the views of the CIT (Appeal), it was not incumbent upon them to write out an elaborate judgment or to reiterate what had already been indicated in the judgment of CIT (Appeal).The issue was whether the purchase was overstated. The assessee was given opportunities repeatedly to adduce evidence to rebut the proof adduced by the revenue in support of the aforesaid issue. The assessee failed to discharge its burden. It has not been shown to us that any question of fact essential to the right decision was left undetermined. The case sought to be built upon on the basis of the letter dated 7th June 2010 is a new case which the authorities below had no occasion to consider. The case run by the assessee before them has been falsified. We do not think for ends of justice a remand is permissible in the facts of the case. - Decided against assessee.
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