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2018 (12) TMI 183 - AT - Income TaxReopening of assessment - Disallowance of 12.5% of bogus purchase - Held that:- We find that tangible and cogent incriminating material were received by the AO which clearly showed that the assessee was beneficiary of bogus purchase entries from bogus entry providers which formed the reason to believe by the AO that income has escaped assessment. The information so received by the AO has live link with reason to believe that income has escaped assessment. On these incriminating tangible material information, assessment was reopened. At this stage there has to be prim-a-facie belief based on some tangible and material information about escapement of income and the same is not required to be proved to the guilt. Precedent from Apex Court in the case of CIT(A) Vs. Rajesh Jhaveri Stock Brokers P. Ltd [2007 (5) TMI 197 - SUPREME COURT] fully justify the validity of reopening in this case It will not be appropriate to consider and take away the relief already granted by the Assessing Officer and CIT (Appeals) to the assessee. As held when sales are not doubted 100% disallowance for bogus purchase is not disallowable. Hence, we confirm the order of ld. CIT(A) sustaining disallowance of 12.5% of bogus purchase.
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