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2023 (7) TMI 731 - AT - Income TaxValidity of reopening of the present assessment - ADIT (Inv.) Unit-III, Kolhapur was investigating suspicious transactions regarding large value of cash transactions in various specific bank accounts - bogus purchases - HELD THAT:- In the instant case, we observe that the AO was in receipt of information that assessee had made bogus purchases on the basis of information received from ADIT (Inv.), Kolhapur. Accordingly, we are of the considered view, that in the instant facts the Assessing Officer had sufficient material / information in his position to form a prima facie belief that income had escaped assessment and hence issuance of notice for reopening the re-assessment proceedings was justified, looking into the facts of the instant case. Accordingly, we are of the considered view that Ld. CIT(Appeals) has not erred in facts and in law in holding that re-assessment proceedings have been validly initiated under Section 147 of the Act. In the result, Ground No.1 of the assessee’s appeal is dismissed. Bogus purchases - GP addition - Investigation Wing of the Department after detailed enquiry and after taking the statement of various Hawala operators on record and on the basis of evidence furnished by such Hawala operates, had come to the conclusion that the assessee had made bogus purchases from the two parties. In the instant facts the assessee had made a specific requisition for allowing the opportunity of cross-examination of the concerned persons on the basis of whose statement the additions have been made in the hands of the assessee (by holding that the purchases from M/s. Param Trading Company and M/s. Rheem Tradelink Pvt. Ltd. is bogus). Accordingly, in the interest of justice, the matter is being set-aside to the file of Ld. CIT(Appeals) so as to offer the assessee an opportunity of cross-examining the concerned persons on the basis of whose statements the aforesaid addition have been made in the hands of the assessee. Appeal of the assessee is allowed for statistical purposes.
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