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2015 (7) TMI 318 - AT - Income TaxValidity of reopening of assessment - Held that:- The assessee was duly provided the copy of reasons recorded for issuance of notice under section 148 of the Act on 16.04.2013. In para 4.2 of the assessment order, it has also been mentioned that the AO had specifically asked the A.R. of the assessee whether he has any objection for issuance of notice under section 148 of the Act, and in reply to that the Ld. A.R. has stated that he was not taking any objection in relation to reopening of the assessment under section 147 of the Act. Thereafter, a notice under section 142(1) was issued to the assessee to furnish the required details. In this case, a specific information was received by the Income Tax Authorities that certain parties were engaged in issuing bogus bills for the supply of material. During the survey action, the assessee was found to have made purchases from the said parties. There were certain discrepancies noted by the AO in the bills. The AO therefore, had reasons to believe that the income of the assessee relating to the purchases made from the above three parties had escaped assessment. Moreover, as stated above, the assessee had not raised any objection relating to reopening of the assessment during the assessment proceedings. We, therefore do not find any infirmity in the order of the Ld. CIT(A) in upholding the action of the AO for reopening of the assessment under section 147 of the Act. - Decided against assessee. Addition on bogus purchases - Held that:- Solely on the basis of unconfronted and general statements of alleged suppliers made before sales tax authorities, purchases of the assessee can not be held to be bogus. We find that the contention of the assessee that the payments for the purchases were made by cheque which was further confirmed by bank statement of the parties, bills of the transporter supported with proof of payment by way of bank statement, quantitative details of the stock, corresponding sales made, increase in sales, gross profits and net profits and there being no incriminating material or discrepancy in stock found at the time of survey have not been examined by the AO. The matter is therefore restored to the file of the AO for the purpose of verification of the above documents and if the above contentions of the assessee are found to be correct from the evidences submitted, the additions in this case on account of bogus purchases will not be warranted.- Decided in favour of assessee for statistical purposes.
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