Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (10) TMI 822 - ITAT MUMBAIReopening of assessment - Held that:- Though, the assessee had filed its return of income voluntarily, however, no assessments under section 143(3) of the Act have been made. Subsequently, the Assessing Officer was in possession of specific information that certain purchases made by the assessee were not genuine as they were effected from hawala operators. Thus, as could be seen, there was tangible material before the Assessing Officer to form his belief that income has escaped assessment. That being the case, the Assessing Officer has properly exercised his power under section 147 of the Act to re–open the assessment for the impugned assessment years. Therefore, ground no.1 in all these appeals of the assessee are dismissed. Bogus purchases addition - Held that:- It is evident that the assessee was unable to prove the genuineness of purchases conclusively by producing documentary evidences such as transportation bills, delivery challans, lorry receipts, etc., to prove actual delivery of goods at its premises. Further, the notices issued under section 133(6) of the Act to the concerned parties also returned un–served. Moreover, the assessee also failed to produce the concerned parties before the Assessing Officer or confirmations from any such parties. In these circumstances, the disputed purchases cannot be accepted as genuine. However, the Assessing Officer has recorded a finding of fact that consumption of material to sales have been proved which pre–supposes that the goods might have purchased from some undisclosed sources and to regularise them assessee has obtained accommodation entries. In these circumstances, the normal gross profit rate as adopted by the learned Commissioner (Appeals) cannot be applied for making addition since such gross profit rate is applicable to genuine purchases. In these types of cases, the Tribunal is taking a consistent view of sustaining addition at 12.5% of the bogus purchases. Applying the same yardstick, the profit estimated at 12.5% of the alleged bogus purchases as done by the Assessing Officer is reasonable
|