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2017 (12) TMI 1667 - AT - Income TaxProfit estimation @ 12.5% of the bogus purchase - HELD THAT:- In the present case sale has not been disputed and the books of account have not been rejected - when the assessee has adduced the sufficient evidence on record which has been discussed about therefore, in the said circumstances, we are of the view that the no addition is required to be made on account of bogus purchase. Non service of noticed is not a ground to raise the addition of bogus purchase to the income of the assessee in view of the law settled in CIT Vs. M/s. Nikunj Eximp Enterprises P. Ltd. [2013 (1) TMI 88 - BOMBAY HIGH COURT]. On seeing the above facts and circumstances of the present case and in view of the law settled relied by the Ld. Representative of the assessee we are of the view that the no addition is required to be raised in the instant case. We ordered accordingly, we decide this issue in favour of the assessee. Disallowance @ 10% of the television expenses, vehicle expenses, conveyance expenses, office & staff welfare expenses and sundry expenses - HELD THAT:- It is incumbent upon the assessee to prove the claim by adducing the sufficient evidence on record. The assessee produced the self made vouchers and also produced the bill and vouchers in support of his claim. The AO restricted the addition to the extent of 10% on the basis of personal element. At the time of the argument the Ld. Representative of the assessee nowhere produced any other cogent evidence in support of his claim. On account of non producing the sufficient evidence in support of the claim, we are of the view that the CIT(A) has rightly restricted the claim to the extent of 10% of the expenses - Decided against assessee. Reopening of assessment - HELD THAT:- AO was not having any information at that time because the Assessing Officer received the information from DGIT(Inv.), Mumbai vide letter dated 26.02.2013. When the Assessing Officer was not having any information as on 15.02.2013, therefore, it is strange in which circumstances, the Assessing Officer issued the present notice on the information received through letter dated 26.02.2013 as on date 15.02.2013. The personal knowledge of the Assessing Officer could not be the ground to invoke the proceeding u/s 147/148 of the I.T. Act. Therefore, in the said circumstances the noticed doesn’t seems to be legal. It is held by Hon’ble Supreme Court in the case of CIT Vs. Kurban Hussain Ibrahimji Mithiborwala [1971 (9) TMI 9 - SUPREME COURT] that the notice issued for any invalid reason makes the proceeding void an without jurisdiction. - Decided in favour of assessee.
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