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2020 (9) TMI 730 - AT - Income TaxRevision u/s 263 - issues mentioned in reasons recorded in writing while re-opening the original assessment - bogus purchases - HELD THAT:- AO in the instant case has taken a view of taxing only 20% of bogus purchase, which cannot, by any standard, be construed as a non-plausible view. Pune benches of the Tribunal in Vinod Bhagwan Patil vs. Pr. CIT [2020 (9) TMI 692 - ITAT PUNE] has quashed the order u/s 263 of the Act in similar circumstances. We, therefore, set-aside the impugned order on this score. We now accentuate the other point of view taken by the ld. Pr. CIT that the AO failed to examine sundry creditors shown by the assessee, details of other purchases, valuation of stock and various expenses as claimed in the Profit and loss account in the reassessment proceedings. DR has categorically submitted that the direction of the ld. Pr.CIT for examining the creditors and purchase accounts etc. along with valuation of stock was connected with the bogus purchases only and not de hors the same. We find this position to be amply emerging from the immediately next line in Para 6.1 of the impugned order to the effect that: “Since assessee’s computation of profit are dependent on all the above issues and when bogus purchases have come to his notice, it was imperative on the part of the AO to verify all these aspects while completing the assessment.” That apart, we find that the ld. Pr.CIT has not indicated anything amiss in these items independent of the issue of bogus purchases. - Decided in favour of assessee.
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