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TMI Blog2016 (6) TMI 527X X X X Extracts X X X X X X X X Extracts X X X X ..... trading in Iron and Steel through its proprietary concern named M/s. Essvee Enterprises. It filed THE return of income for the year under consideration on 18.9.2009 and the same was processed u/s. 143(1) of the Act. Subsequently, the Assessing Officer received information from DGIT(Inv) that certain parties have issued accommodation bills for supply of material and the assessee has purchased goods from such parties to the tune of Rs. 3.02 crores. Accordingly, the Assessing Officer reopened the assessment of the year under consideration by issuing notice u/s. 148 of the Act on 10.3.2014. The assessee objected to the reopening, after obtaining reasons there for and the Assessing Officer also disposed of the objection raised by the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r higher price. Since the assessee could not furnish sufficient documents to support the claim of purchases, the Assessing Officer rejected the books of account u/s. 145(3) of the Act. The AO accepted the fact that the assessee could not have sold the goods without purchasing them. Accordingly he took the view that the assessee should have purchased goods from grey market. The Assessing Officer further observed that the gross profit and net profit rate disclosed by the assessee stood at 1.64% and 0.17% respectively and the same was considered to be low by him. Accordingly the Assessing Officer proceeded to estimate the profit that the assessee would have made on impugned purchases (difference between the value shown in accommodation bills a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing officer. 7. Having heard rival contentions, we are unable to agree with the contentions of the assessee with regard to the issue relating to validity of reopening of assessment. We notice that the assessing officer has received information from the investigation wing on the basis of search conducted by the sales tax authorities. The parties from whom the assessee has claimed to have purchased goods have admitted before the sales tax authorities that they have given only accommodation bills without actually supplying goods. In our view, this information received by the AO was sufficient to form belief that there was escapement of income. In our view, it cannot be said that the assessing officer has reopened the assessment in a mechanica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessing officer has not simply followed the report given by the Sales tax department. but he has carried out his own enquiries. The AO has issued notices u/s 133(6) of the Act and all the notices have been returned back by the postal department with the remarks "Unclaimed/left". Hence the assessing officer has asked the assessee to produce those suppliers, but the assessee did not produce them. The assessee also did not furnish evidences for transportation of goods and also stock register. There should not be any doubt that the burden to prove the expenses is placed upon the assessee and we notice that the assessee has failed in discharging those burden. Before us also, the assessee could not furnish evidences for transportation of g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y noticed that the AO has tried to make his own enquiries, but the assessee also could not afford its help in that regard. Under these set of facts, the inferences drawn by the AO, in our view, cannot be found fault with. 12. At the time of hearing, the Ld A.R placed reliance on various decisions rendered by co-ordinate bench of Tribunal on the additions made on account of alleged bogus purchases. On a careful perusal of the same, we notice that the assessing officer, in each of the above said cases, has proceeded to assess the income on different footing and hence the decisions have been rendered by the Tribunal depending upon the facts prevailing in each of the case. Since there is no parity of facts, we are of the view that those decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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