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2019 (3) TMI 913 - HC - Income TaxReopening of assessment u/s 147 - Bogus purchases - ITAT deleted the addition - HELD THAT:- The proceedings under sections 147/148 have been initiated against the assessee on the basis of information received from ADIT-3 and statement of Shri Har Narayan Gupta, the Proprietor of M/s Annapurna Trading Company, was recorded to the effect that he has only received commission from the respondent assessee without there being any actual sale. In turn, the purchases shown by the assessee were bogus and only a bogus purchase entry was made to reduce actual tax liabilities. In pursuance of the summons and on cross-examination of Shri Har Narayan Gupta, he has clearly and categorically denied that he indulged in any kind of mal-practice. He also denied to make any statement that he was only getting commission for issuing bills with actual sale to respondent assessee. In view of the categorical findings of fact recorded by the Commissioner of Income Tax in favour of the respondent assessee in appeal and confirmed by the Tribunal vide impugned order, no question of law arises in the present appeal. Moreover, the authorities below have recorded that M/s Annapurna Trading Company has produced its books of account in the reassessment proceedings and the same were verified by the Assessing Authority. The quantity and details, furnished by the respondent assessee, were neither disturbed nor rejected. Moreover, the assessee has shown purchases from 13 parties, including M/s Annapurna Trading Company, and none of the parties, from whom purchases have been shown by the respondent assessee, was found bogus purchases by the Assessing Authority. The payments have been made through cheques and all the entries were duly made in the books of account and the same were verified. In view of the findings of fact recorded in favour assessee, that the purchases were being made from M/s Annapurna Trading Company, no substantial question of law arises in the present appeal.
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