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2019 (3) TMI 1621 - AT - Income TaxReopening of assessment u/s 147 - Bogus purchases addition - HELD THAT:- In the case of Kone Elevator India P. Ltd. v. ITO [2011 (3) TMI 1340 - MADRAS HIGH COURT] , CIT v. Ideal Garden Complex P. Ltd. [2011 (9) TMI 731 - MADRAS HIGH COURT] , it is held that in the case of return of income processed u/s 143(1), the only condition to be satisfied for reopening is taxable income has escaped assessment and the assessee’s plea that no fresh material before the AO warranting reopening, is not relevant. In view of the above position of law, the CIT(A) has rightly confirmed the reopening done by the AO by issuing notice u/s 148 of the Act. Estimation @ 12.5% on the purchases - We find that the AO incomplete disregard to the details filed by the assessee during the course of assessment proceedings mentioned by him at para 4.3 of the assessment order and without a finding that the party who gave the statement before the Director of Income Tax (Inv), Mumbai named the assessee to whom they have provided any accommodation bills, has made an estimated addition of ₹ 33,46,408/-. Thus following the ratio laid down in the decisions mentioned hereinbefore, we direct the AO to delete the estimated addition of ₹ 33,46,408/-. Thus the 2nd ground of appeal is allowed.
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