TMI Blog2018 (9) TMI 2066X X X X Extracts X X X X X X X X Extracts X X X X ..... escaped assessment. The belief to be formed by the AO must have a rational nexus with the information available on record. In the present case, the AO had in his possession specific information/material indicating escapement of income which came to his possession after completion of the original assessment. That being the case, in our considered opinion, there is no deficiency in the proceedings initiated u/s. 147 of the Act. Accordingly, we dismiss the ground raised by the assessee. Bogus purchases - Since, the assessee failed to conclusively prove the fact that purchases made from the concerned party was genuine coupled with the fact that there was specific information from DGIT (Inv) as well as Sales Tax Department that the concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... failed to do any such thing. Moreover, notices/summons issued by the AO to the concerned party in the given address have returned unserved. In these circumstances, the assessee cannot come forward with a plea that principle of natural justice is violated. Therefore, there being no merit in this ground, it is dismissed. - ITA No.2060/Mum/2017 - - - Dated:- 12-9-2018 - Shri Saktijit Dey, Judicial Member Shri Manoj Kumar Aggarwal, Accountant Member Appellant By : Shri Ajay R Singh Shri Ravindra Poojary Respondent By : Shri Rajeev Gubgotra ORDER Per Saktijit Dey, Judicial Member This is an appeal by the assessee against the order dated 09.01.2017, of learned CIT(A)-16, Mumbai, for the assessment year 2009-10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax has escaped assessment. Accordingly, he re-opened assessment u/s. 147 of the Act by issuing notice u/s. 148 of the Act. In course of the assessment proceedings, the Assessing Officer called upon the assessee to prove the genuineness of the purchases made from M/s. Srishti Mercantile Pvt. Ltd., by furnishing documentary evidences including documents showing transportation and physical delivery of goods at the premises of the assessee. As observed by the Assessing Officer, in response to the query raised by him, the assessee furnished copies of purchase invoices, delivery challans and payment details. However, assessee failed to furnish any evidence with regard to transportation and delivery of goods in the premises of the assessee. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nging the assessment order both on the legal issue of validity of proceedings u/s. 147 of the Act as well as on merit. However, learned CIT(A) did not find merit in any of the submissions of the assessee and upheld the addition made by the Assessing Officer. 3. The learned AR challenging the validity of assessment proceedings submitted that simply on the basis of information received from the DGIT (Inv), Mumbai, the Assessing Officer has re-opened assessment, which was completed earlier u/s. 143(3) of the Act. He submitted, except the report of DGIT (Inv), there was no other tangible material available with the Assessing Officer to form a belief that income has escaped assessment. Therefore, the assessment in case of the assessee having ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of ₹ 37,20,244/- on account of bogus purchases. Since we have already discussed the facts relating to this issue earlier, there is no need to repeat them again. Suffice to say, the Assessing Officer added the amount of ₹ 37,20,244/- by treating the purchases from M/s. Srishti Mercantile Pvt. Ltd. to be bogus. The learned AR reiterating the stand taken before the departmental authorities, submitted that assessee has produced all evidences such as purchase invoice, delivery challans, payment made to supplier through banking channel, consumption of goods, goods outward register showing dispatch of goods from warehouse etc. He submitted, inspite of production of such evidences; the departmental authorities have made the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6.01.2017, the AR of the assessee expressed his inability to file the details including the consumption of materials purchased. Even, the assessee could not give names and addresses of the persons to whom the material purchased was distributed. Thus, from the aforesaid facts, it is clear that the assessee s claim of purchases to be genuine was not found to be correct through the inquiry conducted, both at the level of the Assessing Officer as well as the CIT(A). Since, the assessee failed to conclusively prove the fact that purchases made from the concerned party was genuine coupled with the fact that there was specific information from DGIT (Inv) as well as Sales Tax Department that the concerned party is a hawala operator, it has to be be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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