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2018 (2) TMI 970 - AT - Income TaxValidity of reopening of assessment - addition u/s 69C - bogus purchases - Held that:- The assessee had shown purchases from the above company of Shri Praveen Kumar Jain amounting to ₹ 20,96,965/-. The AO on examination of the records found that no actual purchases were made from these parties but their names were only used to inflate the business expenses and thereby reducing the income chargeable to tax. According to the AO, it is established on the basis of information provided by the Investigation Wing that purchase from the parties are bogus and the bogus purchases pertaining to the Assessment Year under consideration representing income of ₹ 20,96,965/- had therefore, escaped assessment. AO noted that it was failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment. Hence reasons for reopening of the cases were recorded and notice u/s 148 was issued on 24-03-2014 which was duly served upon the assessee. It is also noted that copy of reasons recorded were supplied to the assessee alongwith notice u/s 142(1) and notice u/s 143(2) dated 21-04-2014. The AO on examination of purchase details noted that the assessee had shown purchases from M/s. JPK Trading Pvt. Ltd amounting to ₹ 20,96,965/-. As per the statement of Shri Praveen Kumar Jain, it was found that M/s. JPK Trading Pvt. Ltd had never sold any goods and were only issuing bogus sales invoices and charged commission. Thus AO was justified in reopening the case of the appellant for the year under consideration u/s 147 of the Act - Decided against assessee
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