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2016 (8) TMI 272 - GUJARAT HIGH COURTReopening of assessment - reasons to believe - information provided by DGIT (Investigation) Mumbai - Held that:- Perusal of the reasons recorded show that the information was provided to the Assessing Officer by DGIT (Investigation) Mumbai, concerning dubious transactions of Rajendra Jain and Surendra Jain who were managing Sparsh Export Pvt. Ltd. These persons were subjected to search during which they had also made certain confessional statements. The assessee had made purchases of cut and polished diamonds worth ₹ 11.99 lacs from Sparsh Export Pvt. Ltd. On the basis of the information available at the command of the Assessing Officer, he noted that Rajendra Jain and Surendra Jain merely provided accommodation entries without actual sale of diamonds. The assessee had thereby claimed higher expenditure and reduced the profit. It cannot be stated that the Assessing Officer did not have tangible materials to form a belief that the income chargeable to tax had escaped assessment. Such information was not available during the original assessment. Obviously the assessee would not make such disclosures. The requirement for reopening of the assessment even beyond a period of four years are therefore, satisfied. Merely because such information was supplied to the Assessing Officer by the investigation wing of the department would not mean that the Assessing Officer cannot rely upon it after of course, perusing the same and form his own opinion on the basis of the same.
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