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2019 (2) TMI 1954 - AT - Income TaxReopening of assessment u/s 147 - whether no fresh material before the AO warranting reopening? - HELD THAT:- AO reopened the assessment which was processed u/s 143(1) of the Act. In the case of Rajesh Jhaveri Stock Brokers P. Ltd. [2007 (5) TMI 197 - SUPREME COURT] held that intimation u/s 143(1)(a) is not an assessment and held valid the notice issued u/s 148. In the case of Kone Elevator India P. Ltd.[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. Estimation of income on bogus purchases - HELD THAT:- We find that once the onus shifted to the AO, instead of verifying those details, he has jumped into an estimation which is uncalled for. Similarly, there is no merit in the order of the Ld. CIT(A) restricting the disallowance to 3% of such purchases - we set aside the order of the Ld. CIT(A) restricting the disallowance to 3% of such purchases and allow the 2nd ground of appeal.
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