Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1748 - AT - Income TaxReopening of assessment - bogus purchases - AO received information from the DGIT(Inv.), Mumbai who in turn received information from the sales tax department about some accommodation entry provider for purchases - Held that:- Tangible and cogent incriminating material were received by the AO which clearly showed that the assessee was beneficiary of bogus purchase entries from bogus entry providers which formed the reason to believe by the AO that income has escaped assessment. The information so received by the AO has live link with reason to believe that income has escaped assessment. On these incriminating tangible material information, assessment was reopened. At this stage there has to be prima facie belief based on some tangible and material information about escapement of income and the same is not required to be proved to the guilt. As relying on RAJESH JHAVERI STOCK BROKERS P. LIMITED [2007 (5) TMI 197 - SUPREME COURT] it justify the validity of reopening in this case. The issue of notice to all the parties have returned unserved. Assessee has not been able to provide any confirmation from any of the party. Assessee has also not been able to produce any of the parties. In this factual scenario it is amply clear that assessee has obtained bogus purchase bills. Mere preparation of documents for purchases cannot controvert overwhelming evidence that the provider of these bills are bogus and non-existent. Revenue authorities are not supposed to put on blinkers. In the present case, the assessee wants to disregard the unassailable fact that these suppliers are bogus and go by the documents shown. This proposition is totally unsustainable. It will not be appropriate to take away the relief already granted by the learned CIT(A). Accordingly uphold the order of the learned CIT(A) wherein he has sustained 12.5% as disallowance out of the bogus purchase. - Decided against assessee
|