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2021 (9) TMI 338 - AT - Income TaxValidity of reopening of the case u/s.147/148 - Bogus/paper transactions - reopening pursuant to the report received from the ADIT(Investigation), Ludhiyana information was received from the investigation wing, Ludhiana mentioning that Madan Lal Pahuja had issued bogus purchase bills - HELD THAT:- From the reasons to reopen, it is clear that the whole allegation was based upon the statement of Madan Lal Pahujarecorded by the Investigation wing on 7.1.2015. To our surprise, the statements of Jatinder kumar prop. Shree Nath Ispatudhyog and proprietor of M/S Lovy Steel & Allied Industries were never recorded by the AO or the investigation wing. The allegation of bogus purchases from the said two parties were based upon the statement of Madan Lal Pahuja who had made the transactions with them. Assessee not provided the copy of the statement of Shri Madan Lal Pahuja recorded on 07.01.2015 - It is essential for the Assessing Officer to provide the copy of the foundation fact ,namely the statement of Shri Madan Lal Pahuja,to the Assessee at the time of providing reasons for reopen the assessment. The same has not been done by the Assessing Officer, which is contrary to the law laid down by Delhi High Court in the matter of Sabh Infrastructure [2017 (9) TMI 1589 - DELHI HIGH COURT]. From the reading of the answer given by Shri Madan Lal Pahuja in response to question no. 6 and 8 it is clear that the name of the Assessee have not been mentioned by the said Shri Madan Lal Pahuja, as beneficiary party to whom the alleged bogus bills were given by him. He had merely mentioned the name of Brokers with whom, he was carrying the transactions. However there is no evidence to link, the brokers, assessee and MrPhauja on record. Further there is no evidence brought to record , that the assessee had recerived bogus bills from the entities of Phauja. Once the information was available in the assessment record of the Assessee company for the assessment year 2010-11, which was subject matter of scrutiny assessment and on the basis of this information, the assessment was completed and the additions were made. In our opinion, the same information was admitted to be correct by the Assessing Officer in the reasons to reopen as it is matching with the information received from the Investigation wing. In our considered opinion, once the Assessing Officer formed an opinion on the information available on record and framed the assessment, then the Assessing Officer cannot be permitted to change his opinion based on same information. Assessing Officer at one point is saying that the purchases were made for ₹ 4.26 Crores and other point as against the figure given for ₹ 3.28 Crores. The abovesaid, clearly shows there was total non-application of mind by the Assessing Officer at the time of reopening the assessment. In view of thecontradictory facts on the matter of quantum of purchases, we quashed the reopening made by the Assessing Officer on this ground also. - Decided in favour of assessee.
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