Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (7) TMI 292 - AT - Income TaxReopening of assessment u/s 147 - HELD THAT:- No doubt, in assessment year 2009-10, assessments in case of both the assessee were initially completed under section 143(3) - as observed, after receiving the notices issued u/s 148 the assessee had raised objection against reopening of assessment. It is evident, the assessing officer has dealt with the objections of the assessee in separate orders. Thus, the assessing officer has acted in conformity with the legal principles before proceeding to re-assess the income of the assessee. As noticed from the material on record that the assessing officer has only made routine enquiry in course of original assessment proceedings. He has not made specific enquiry in respect of the purchases. It is also a fact on record, after completion of original assessments for assessment year 2009-10, AO received information from the Investigation Wing of the department indicating that certain purchases claimed to have been made by the assessee are non genuine as the concerned selling dealers have indulged in providing accommodation bills - AO had tangible material available with him to form a belief that income chargeable to tax has escaped assessment - contention of the assessee that the assessing officer has reopened the assessment on a mere change of opinion without proper application of mind is contrary to facts on record; hence, unacceptable. Insofar as assessment year 2010-11 it is an admitted factual position that the returns of income filed by both the assessees were only processed under section 143(1) - there was no occasion for examining the purchases made by the assessees - unable to accept assessee’s contention that the assessments were not reopened validly - there is no need for deliberating on them at length - grounds raised by the assessees challenging the validity of reopening of assessment under section 147 of the Act do not have merit. Estimation of income on bogus purchases - Considering the nature of business of both the assessee’s and keeping in view the decision of coordinate bench in case of M/s Sterling Steel Industries [2020 (4) TMI 889 - ITAT MUMBAI] disallowance @2% on the alleged non genuine purchases would be fair and reasonable.
|