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2016 (6) TMI 527 - AT - Income TaxValidity of reopening of assessment u/s. 147 of the Act - Held that:- We are unable to agree with the contentions of the assessee with regard to the issue relating to validity of reopening of assessment. We notice that the assessing officer has received information from the investigation wing on the basis of search conducted by the sales tax authorities. The parties from whom the assessee has claimed to have purchased goods have admitted before the sales tax authorities that they have given only accommodation bills without actually supplying goods. In our view, this information received by the AO was sufficient to form belief that there was escapement of income. In our view, it cannot be said that the assessing officer has reopened the assessment in a mechanical manner. Accordingly we uphold the order of Ld CIT(A) passed on this issue. - Decided against assessee Addition of gross profit at 30% of non-genuine purchases - Held that:- AO has not given any basis for adopting the profit rate at 30%. Since the assessee was contending that the purchases were genuine one, it did not have an opportunity to advance its arguments with regard to the rate of 30% adopted by the AO. Accordingly, we are of the view that the assessee should be provided with an opportunity to advance its arguments on the rate of profit estimated by the AO. Accordingly we set aside this matter relating to estimation of profit from bogus purchases to the file of the AO with the direction to decide the same afresh, after affording opportunity of being heard to the assessee. The order of Ld CIT(A) passed on this issue stands modified accordingly. - Decided in favour of assessee by way of remand.
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