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2023 (1) TMI 717 - AT - Income TaxReopening of assessment u/s 147 - bogus purchases - Scope of intimation received from ITO, Ward- 9(2), New Delhi - HELD THAT:- While passing this reassessment order AO of the assessee was having in hand the information in the form of intimation received from ITO, Ward-9(2), New Delhi about suspicious purchases from M/s. Stans Networking Pvt. Ltd. But the Ld. AO of assessee restricted the reopening and reassessment to the issue of share capital and share premium only and without any indulgence to the information in hand the available about purchases from Stans Networking Pvt. Ltd. Thus, when the first reassessment order was passed on 19.06.2014, as Ld. AO was aware of the fact of scrutiny of the issue of purchases and the assessment concluded u/s 143(3), so quite likely for that reason, there was no action on the intimation letter dated 01.04.2013. AO quite arbitrarily seems to have resurrected the issue by recording reasons available wherein without referring to letter dated 01.04.2013 from ITO, Ward- 9(2), New Delhi. Ld. AO merely reproduced the intimation by referring to the intimation as “now, information is received from ITO, Ward-19(3), New Delhi”. This astuteness of Ld. AO in not mentioning the date of the intimation makes the reopening reasons tainted with arbitrainess and the satisfaction recorded cannot be considered to be based on any new information. CIT(A) while passing the impugned order sought a remand report with regard to ledger accounts, copy of invoices, copy of bank statements and the physical evidences in the form of photographs of the goods purchased from Stans Networking Pvt. Ltd. and Ld. AO forwarded report to Ld. CIT(A) that in remand proceedings after taking into consideration the evidences, the purchases from Stans Networking Pvt. Ltd. were found to be in order. Still, Ld. CIT(A) preferred to rely the intimation received from ITO, Ward- 9(2), New Delhi to give finding that as that assessing officer has held M/s. Stans Networking Pvt. Ltd. to be accommodation entry provider the reopening was valid. The Bench is of considered opinion that the findings of Ld. ITO, Ward-9(2), New Delhi were not so sacrament so as to brush aside the inquiry and remand proceeding report dated 30.03.2019 submitted by the Ld. AO of the assessee. When the present impugned order was passed on 15.07.2019 the appellate order in the case of M/s. Stans Networking Pvt. Ltd. was already there and that may have been possible reason for the ld. AO of the assessee to have submitted in the remand report dated 30.03.2019 that the purchases from M/s. Stans Networking Pvt. Ltd. are found to be an order. Ld. CIT(A) whimsically ignored the same. Thus, findings of Ld. CIT(A) sustaining the addition on merits is not sustainable.- Decided in favour of assessee.
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