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2018 (12) TMI 1128 - AT - Income TaxReopening of assessment - Receipt of accommodation entries - addition of gross profit only with respect to the alleged bogus purchase of the goods - Held that:- The reasons recorded shows that assessee has received an accommodation entry from Mohit international for purchase of diamond. The income of the assessee was not assessed earlier under section 143 (3) of the income tax act. There is a tangible material available with the learned assessing officer to reopen the case of the assessee as it was found that Mohit international is operated by Mr. Praveen Jain who is an accommodation entry provider. Further the first proviso to section 147 applies only with respect to the assessment made under section 143 (3) of the income tax act and not otherwise. In view of this, we do not find any infirmity in the order of the learned commissioner of income tax appeals in upholding the reassessment proceedings. On the merits when the assessee has already shown gross profit in the books of account on sale of those goods which are allegedly purchased from an accommodation entry provider no further addition can be made on account of the gross profit as it would amount to double addition. Hence we reverse the finding of the learned commissioner of income tax appeals in upholding the addition of ₹ 9 0000/- . However with respect to the addition of rupees 11360 on account of the alleged commission on the accommodation entry provided by the Praveen Jain group, we do not find any infirmity in the order of the learned commissioner of income tax appeals in upholding the addition to that extent for the simple reason that there is no denial from the assessee that assessee has not purchased goods from M/s Mohit international which is part of Praveen Jain group. - Decided partly in favour of assessee.
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