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2023 (2) TMI 908 - AT - Income TaxReopening of assessment - income for bogus purchases - HELD THAT:- AO received information from the DGIT (Inv.), Mumbai, as well as the Sales Tax Department, Government of Maharashtra, indicating that the assessee is a beneficiary of bogus purchase bills. On the basis of such information, which is a new and tangible material, AO had formed the belief that income chargeable to tax has escaped assessment requiring re–opening of assessment under section 147 - Therefore, in view of the above, we uphold the re–opening of assessment under section 147 of the Act in the facts of the present case. Accordingly, ground no.1, raised in assessee’s appeal is dismissed. Estimation of income bogus purchases - As relying on Mohammad Haji Adam case [2019 (2) TMI 1632 - BOMBAY HIGH COURT] we set aside the impugned order passed by the CIT(A) and restore the matter to the file of the Assessing Officer with the direction to restrict the addition as regard the bogus purchases by bringing the gross profit rate on such bogus purchases at the same rate as that of the other genuine purchase. We further direct that if the gross profit rate on bogus purchases is higher than the other genuine purchases and the same has already been offered to tax by the assessee then no further addition be made. Accordingly, grounds raised in assessee’s appeal are allowed for statistical purposes.
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