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2019 (2) TMI 2035 - AT - Income TaxValidity of re-opening of assessment under section 147 - AO received specific information from the DGIT (Inv.), Mumbai that purchases claimed to have been made from three parties are not genuine - HELD THAT:- AO had tangible material before him to form the belief that income chargeable to tax has escaped assessment. It is also seen from record that challenging the re–opening of assessment assessee had raised objections before the Assessing Officer. However, before completion of the assessment, the Assessing Officer has disposed off the objections of the assessee through a separate well reasoned order. As regards the contention of the assessee that there being no failure on the part of the assessee to disclose fully and truly all material facts relating to the assessment the re–opening of assessment after four years is invalid, we must observe, non–furnishing of accurate / correct details relating to purchases made tantamount to failure on the part of the assessee to disclose fully and correctly all material facts relating to his assessment. That being the case, the re–opening of assessment cannot be held to be invalid The contention of the assessee that in spite of having information before him, the Assessing Officer did not make any addition on account of bogus purchase in the assessment completed under section 153C of the Act is irrelevant considering the fact that the intent and purpose of section 153C of the Act is different from section 148 of the Act. In view of the aforesaid, I hold that the Assessing Officer has validly re–opened the assessment under section 147 of the Act. Accordingly, ground no.1 is dismissed. Estimation of Income - Bogus purchases - As respectfully following the decision of the Co–ordinate Bench in assessee’s own case we direct the Assessing Officer to restrict the addition to 2% of the non–genuine purchases. This ground is partly allowed.
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