TMI Blog2022 (12) TMI 1224X X X X Extracts X X X X X X X X Extracts X X X X ..... ly based on a pretence, does not find favor with me, as there was sufficient material available with the A.O for taking recourse to proceedings u/s.147 - Thus, the additional ground of appeal No.1 raised by the assessee is dismissed in terms of the aforesaid observations. Claim of the Ld. AR that there is no independent application of mind by the A.O, and the proceedings u/s.147 of the Act have been initiated by him on the basis of a borrowed satisfaction - We are unable to subscribe to the same. On a careful perusal of the reasons to believe , find that the A.O after referring to the material as was available before him had clearly applied his mind, and had on the basis of a bonafide belief so arrived at by him taken recourse to proceedings u/s.147 of the Act. Quality of the reasons to believe , as per the settled position of law, cannot be allowed as a basis for the assessee to assail the validity of jurisdiction assumed by the A.O u/s.147 of the Act. Thus, the additional ground of appeal No.2 raised by the assessee is dismissed in terms of the aforesaid observations. Claim of the assessee that as the reasons to believe was followed by issuance of notice u/s.148 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under: Additional Ground No.1. On the facts and circumstances of the case and in law, reasons recorded are based on information of bogus purchase bills of Rs.5,61,050 from the alleged bogus firm (Syndicate Corporation); there is no live link with the alleged unverified information received wherefrom; reopening cannot be resorted to for fishing or roving inquiry on mere suspicion that income chargeable to tax may have escaped assessment; it is not the 'reasons to believe' in the eyes of law as mandated u/s. 147 since thereafter, he has made addition of Rs.1,40,260 on estimation of 25% on adhoc basis on that count; reopening u/s.148 is liable to be quashed. Additional Gr.No.2: 2. On the facts and circumstances of the case and in law, the 'reasons to believe' contain not the reasons but the conclusions of the Id AO one after the other; there is no independent application of mind by the ld AO to the tangible material which forms the basis of the reasons to believe that income has escaped assessment; the conclusions of the Id AO are at best a reproduction of the conclusions of the information from extraneous sources; indeed it is a 'borrowed satisfact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 27.04.2017, declaring an income of Rs.1,90,400/-. 5. During the course of the assessment proceedings, it was observed by the A.O that the assessee had claimed to have purchased rice bran of Rs.5,61,050/- from the aforesaid tainted party, viz. M/s. Syndicate Corporation, Raipur. It was observed by the A.O that as the aforesaid party, viz. M/s. Syndicate Corporation, Raipur was engaged in providing bogus bills, therefore, its registration was cancelled by the Commercial Tax Department, Chhattisgarh. On a perusal of the purchases which the assessee had claimed to have made from the aforesaid party, it was observed by the A.O that the same comprised of four purchase transactions, as under: Date Amount 01.01.2010 Rs.1,37,200/- 03.01.2010 Rs.1,42,100/- 05.01.2010 Rs.1,42,100/- 05.01.2010 Rs.1,39,650/- Total Rs.5,61,050/- On the basis of verification carried out by the A.O, it was gathered by him that the vehicles/lorry numbers mentioned in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring the year under consideration was only trading in Iron and steel, while for the assessee had stated to have purchased rice bran from it in itself belies its said claim. Also, the fact that the goods that had been claimed by the assessee to have received from the aforesaid party through vehicles which were not compatible to carry load as was stated in the bills/vouchers also supports the view taken by the lower authorities that the assessee had not many any genuine purchases from the said party. Accordingly, I uphold the view taken by the lower authorities that the assessee had not made any genuine purchases from the aforementioned party. 11. Adverting to the claim of the assessee that the A.O had wrongly assumed jurisdiction u/s 147 of the Act, I think it fit to cull out the reasons to believe which forms the very basis for taking recourse to the said proceedings by the A.O, as under: The assessee filed the return of income for A.Y. 2010-11 declaring total income at Rs. Nil on 15/10/2010. The return was processed u/s. 143(1) and accordingly, the order u/s 143(1) was passed on 18.04.2011. Information in respect of bogus purchased bills taken by the assessee during th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the A.O after referring to the material as was available before him had clearly applied his mind, and had on the basis of a bonafide belief so arrived at by him taken recourse to proceedings u/s.147 of the Act. Quality of the reasons to believe , as per the settled position of law, cannot be allowed as a basis for the assessee to assail the validity of jurisdiction assumed by the A.O u/s.147 of the Act. Thus, the additional ground of appeal No.2 raised by the assessee is dismissed in terms of the aforesaid observations. 13. Apropos, the claim of the assessee that as the reasons to believe , dated 31.03.2017 was followed by issuance of notice u/s.148 of the Act on the same date, i.e., on 31.03.2017 after obtaining approval of the appropriate authority u/s.151 of the Act, therefore, it could safely be inferred that the approval had been granted by the sanctioning authority in a mechanical manner, I am afraid does not find favour with me. On a perusal of the sanction granted by the appropriate authority u/s.151 of the Act, I find that the latter had approved the reasons to believe recorded by the A.O with an observation that the case was fit for reopening, and thus, had g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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