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2017 (12) TMI 746 - AT - Income TaxReopening of assessment - disallowance of bogus purchase - Held that:- As regards the reopening, we find the Commissioner of Income Tax (Appeals) has passed an apposite order. The reopening has been done on the basis of cogent information regarding the assessee dealing with hawala operators. The case laws referred by the Commissioner of Income Tax (Appeals) are germane and support the validity of reopening in this case. As regards the merits of the case, facts of the case indicate that the assessee has engaged into obtaining bogus purchase bills. Since, sales have not been doubted; entire disallowance of purchase is not sustainable in light of Hon'ble jurisdictional High Court decision in the case of Nikunj Enterprises [2013 (1) TMI 88 - BOMBAY HIGH COURT ]. We further note that the Assessing Officer has also himself not done any investigation and enquiry. The assessee’s request for cross examination has not been entertained by the Assessing Officer. In these circumstances, 6% disallowance of bogus purchase sustained by the Commissioner of Income Tax (Appeals) is appropriate and does not need any interference on our part. Both the ld. Counsel also fairly agreed to this proposition.
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