Home
Forgot password New User/ Regiser Register to get Live Demo
2022 (3) TMI 1308 - AT - Income TaxReopening of assessment u/s 147 - Validity of reasons to believe - bogus purchases - HELD THAT:- As gone one through the reasons recorded by the Assessing Officer and noted reasons were recorded by the Assessing Officer as per the provision of section 147 and the reasons so recorded by the Assessing Officer are valid in the eye of law, therefore we dismiss the ground raised by assessee on technical issue of reopening under section 147. As relying on SHRI PANKAJ KANWARLAL JAIN HUF VERSUS THE INCOME TAX OFFICER, WARD-2 (3) (8) , SURAT [2019 (8) TMI 1769 - ITAT SURAT] when assessing officer received information from the investigation wing that two well known entry operators of the country provided bogus entries to various beneficiaries, and assessee was one of such beneficiary, assessing officer was justified. Bogus purchases - It is settled law that under Income-tax, the tax authorities are not entitled to tax the entire transaction, but only the income component of the disputed transaction, to prevent the possibility of revenue leakage. Therefore, we are of the view that disallowances @ 6% of impugned purchases/disputed purchases would be sufficient to meet the possibility of revenue leakage. In the result the ground No. 2 of appeal raised by the assessee is partly allowed and the grounds of appeal raised by revenue are dismissed.
|