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TMI Blog2015 (7) TMI 318X X X X Extracts X X X X X X X X Extracts X X X X ..... or the sake of convenience the facts have been taken from ITA No.6091/M/2014 for A.Y. 2008-09. ITA No.6091/M/2014 for A.Y. 2008-09 2. The assessee has taken the following grounds of appeal: "1. Upholding the validity of the re-assessment order u/s 143(3)/147 despite the fact that the assessment was completed u/s 143(1), that the primary information concerning the re-assessment was already on record as mentioned by the AO himself at para 3 of the re-assessment order, and that no new information was received by the AO. 2. Upholding the addition of Rs. 1,15,63,283/- as bogus purchases made from All Steels, i. merely on the grounds that the said information about bogus purchases was given by Sales Tax authorities, without the AO making any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... given in the Tax Audit Report as well as in the notes to the audited financial statements and all the basic details that go into the stock register were submitted in the to the AO, as mentioned in para 4.1 of the appellate order. ix. although the sales made from these purchases were accepted by the AO along with the profit declared thereon. x. without even attempting to discuss the judgments of different Courts and Tribunals that the assessee relied upon." 3. A perusal of the above grounds of appeal reveals that the assessee has raised two issues: (i) agitating the reopening of the assessment under section 147 of the Income Tax Act, (ii) agitating the addition of Rs. 1,15,63,283/- made by the Assessing Officer (hereinafter referred to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 148 of the Act. 5. We find from the assessment order that it has been specifically mentioned in para 4.1 of the assessment order that the assessee was duly provided the copy of reasons recorded for issuance of notice under section 148 of the Act on 16.04.2013. In para 4.2 of the assessment order, it has also been mentioned that the AO had specifically asked the A.R. of the assessee whether he has any objection for issuance of notice under section 148 of the Act, and in reply to that the Ld. A.R. has stated that he was not taking any objection in relation to reopening of the assessment under section 147 of the Act. Thereafter, a notice under section 142(1) was issued to the assessee to furnish the required details. In this case, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g documentary evidence, details of transportation of and documentary evidence reflecting the relevant entries of having received such goods and having consumed. b) That the assessee did not make any request for cross examination. c) The assessee has also not produced its Stock Register. d) The assessee has also failed to produce any satisfactory evidence to show actual purchase of material, its transportation and consumption details." Aggrieved by the order of the AO, the assessee preferred appeal before the Ld. CIT(A). 7. The Ld. CIT(A), however, observed that there were certain discrepancies/blank columns in the invoices relating to the purchases made by the assessee from M/s. Ali Steels. He further observed that the assessee had not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore all the basic details that go into the stock register were duly submitted before the AO. He has further contended that even the sales made from these purchases and the profit thereupon was accepted by the AO. He has also relied upon the decision of the Hon'ble Bombay High Court in the case of "CIT v. M/s. Nikunj Eximp Enterprises Pvt. Ltd." ITA No.5604 of 2010 decided on 17.12.2012 and further of the Hon'ble Calcutta High Court in the case of "Diagnostics v. CIT" (2012) 20 taxmann.com 692 (Cal.). The Ld. D.R. on the other hand, has relied upon the findings of the lower authorities. 9. We have considered the rival submissions. We find that the additions in this case have been made on the ground of information received from inv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion of purchases is concerned, there is corresponding increase in sales also. The Ld. A.R. has, thus, contended that under the such circumstances, the assessee has successfully discharged its burden to prove the genuineness of the purchases made. He has further brought our attention to the decision of the Hon'ble Gujarat High Court in the case of "CIT vs. M.K. Brothers" (1987) 163 ITR 249 wherein it has been held that where there was nothing to indicate that the amount given by the assessee for the purchases made had come back to the assessee in any other form and where there was no evidence that the said concerns gave bogus vouchers to the assessee and even the statements made by the alleged suppliers in no way implicate the transa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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