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2020 (2) TMI 504 - AT - Income TaxReopening of assessment u/s 147 - Bogus purchases - AO estimated such profit element @ 12.5% on the bogus purchase - HELD THAT:- Purchases were never examined or verified at the time of processing of return of income under section 143(1). On the contrary, tangible material has come to the possession of the Assessing Officer subsequently revealing escapement of income on account of non–genuine purchases. There is no dispute that on the basis of such material, the Assessing Officer has re–opened the assessment under section 147 of the Act. That being the case, we do not find any merit in the grounds raised by the assessee challenging the validity of the re–opening of the assessment under section 147 of the Act, hence, dismissed Bogus purchases - Both the Assessing Officer and learned Commissioner (Appeals) have proceeded to make the addition on estimate basis makes it clear that they have no doubt with regard to the fact that the goods representing such purchases have been entered in assessee’s books of account and corresponding sales have been effected. It is noticed, while deciding identical issue in case of the Karta of the HUF, who is not only in same line of business but had made similar purchases from common entities, the Tribunal [2017 (12) TMI 1667 - ITAT MUMBAI] relating to the Assessment Years 2009–10 and 2010–11 has deleted the additions. - Decided against revenue
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