Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (1) TMI 727 - AT - Income TaxRevision u/s 263 - Bogus purchases - AO estimated the gross profit @ 7% of the alleged non–genuine purchase - HELD THAT:- As during the assessment proceedings, the Assessing Officer has not only enquired into the alleged purchase transaction, but has applied his mind to the materials brought on record. In fact, the disputed purchase is the sole reason for which the assessment was re–opened under section 147 of the Act. In view of the aforesaid factual position, the observations of learned PCIT that the Assessing Officer has not applied his mind or has not made enquiry which he should have made, in our view, is without any factual basis. More so, when the selling dealer has responded to notice issued under section 133(6) by the Assessing Officer and has confirmed the sales made to the assessee PCIT has not expressed any opinion as to whether the entire purchase should have been disallowed or only profit element has to be added. He has again left the issue open for the decision by the Assessing Officer while directing him to make afresh assessment. When the Assessing Officer has already passed the assessment order after making necessary enquiry and applying his mind to the materials brought on record, it is not understood what more can be achieved by setting aside the assessment order and restoring the issue to him for making a fresh assessment without any specific direction. In the aforesaid facts and circumstances, we hold that exercise of power under section 263 of the Act in the facts of the instant case is not valid. Accordingly, we quash the order passed under section 263 of the Act and restore the assessment order. Assesee's Grounds are allowed.
|