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2019 (6) TMI 93 - AT - Income TaxReopening of assessment u/s 147 - reopening based on opinion given by DCIT and not by DVO - live link between incriminating tangible information received by the AO and formation of belief that income of the assessee has escaped assessment - Bogus purchases - HELD THAT:- In the instant case before us, It is based on admission of key persons of searched persons that their group were indulging in providing bogus accommodation entries by way of sales and unsecured loans wherein name of the assessee also found mentioned in the list of beneficiaries of the said accommodation entries being compiled by Revenue during search operations u/s 132, the AO reopened the concluded assessment u/s 147 and as held that this information received by the AO from DGIT(inv.), Mumbai and DCIT, Surat to be tangible incriminating information coming into possession of the AO which has live link with formation of prima facie belief that income of the assessee has escaped assessment. AO received information from DDIT(Inv.), Mumbai and DCIT, Surat and not from DVO, which we have already held was a tangible incriminating information having live link with formation of belief that income of the assessee has escaped assessment to invoke provisions of Section 147 in the instant appeal before us. We uphold the reopening of the assessment by the AO u/s 147 in the instant case before us and decide ground number 1 raised by assessee in memo of appeal filed with tribunal against assessee Bogus purchases - HELD THAT:- We are unable to impress ourselves with this feeble argument advanced by the assessee, firstly that was addition made by AO on account of shortage/excess of stock and it was for the assessee to show with cogent evidences/explanation that this item of stock bought from M/s Mani Prabha Impex Private Limited was infact added in its entirety to income as shortages of stock by the AO and now making further additions will lead to double additions of the same income and secondly, this tangible incriminating information of the assessee indulging in obtaining bogus accoomodation bills was received by AO after completion of the assessment by the AO for AY 2012-13 u/s 143(3) on 30.03.2014. Under these facts and circumstances of the case, in our considered view keeping in view factual matrix of the case, the profit embedded in these purchases are required to be brought to tax which requires estimation of income as held by Hon’ble Supreme Court in the case of Kachwala Gems v. JCIT [2006 (12) TMI 83 - SUPREME COURT] In our considered view keeping in view factual matrix of the case, estimation of additional income @ 10% of the alleged bogus purchases to the tune of ₹ 8,33,985/- made from said M/s Mani Prabha Impex Private Limited will meet end of justice. The AO had itself estimated additions to income @10.33% of alleged bogus purchases in immediately succeeding assessment year viz. AY 2012-13. Thus, we estimate the additional income over and above what was declared in the return of income filed with the revenue being profit embedded in these alleged bogus purchased from M/s Mani Prabha Impex Private Limited @ 10% of the alleged bogus purchases. - Decided partly in favour of assessee
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