9911796707
TMI Blog2022 (12) TMI 1529X X X X Extracts X X X X X X X X Extracts X X X X ..... was beyond the prescribed time and mandatory approval u/s. 151 of the Act was not shown to exist. 2. Because, the Id. CIT(A) has erred in upholding the validity of the reassessment order u/s. 148 which has been passed without fulfilling necessary conditions in this regard. 3. Because, the Id. CIT(A) has erred in holding the impugned purchases to be bogus, in spite of voluminous evidences on record simply on the basis that the current addresses of vendors were not provided and the vendors were not produced before the Respondent. 4. Because, the Id. CIT(A) has erred in upholding the validity of the reassessment order ignoring the fact that the statement of third party relied upon by the Respondent stood retracted through affidavit. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12.5% of Rs.3,00,52,199/- which comes to Rs.37,56,525/- (profit embedded in the sales). Aggrieved the assessee preferred an appeal before the learned CIT(A), who was pleased to confirm the action of the AO. Aggrieved by the aforesaid decision of the learned CIT(A), the assessee has filed this appeal before the Tribunal. It has been brought to my notice by the learned Departmental Representative (DR) that in the first round of appeal this Tribunal (SMC) was pleased to dismiss the appeal of the assessee, vide order dated 05/02/2018. Thereafter the assessee had preferred a Miscellaneous Application No.456/MUM/2018 arising out of ITA No.4722/MUM/2017 wherein, the Tribunal vide order dated 18/01/2019 was pleased to recall the order for fresh adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,52,199/- during A.Y. 2007-08. In view of the above I've reason to believe that Income of the assessee for A.Y. 2007-08 to the tune of Rs3,00,52,199/- has escaped assessment the meaning of provisions of Sec 147 of the IT Act, 1961." 6. From a perusal of the aforesaid reasons recorded by the AO justifying the reasons for reopening, it is noted that the AO has taken note of the search operation carried out by the Investigation Wing of Mumbai on 01/10/2013 in the case of Shri Pravin Kumar Jain. According to the AO the ibid Group (Shri Pravin Kumar Jain) was providing accommodation entries of bogus sales through various benami concerns run by him. According to the AO, the entry operator Shri Pravin Kumar Jain has admitted of doing such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat when an AO receives adverse information, it triggers 'Reason to suspect' and not 'Reason to believe' which is the requirement of law. And further one should appreciate the fine distinction between 'Right to suspect' and 'Right to believe'. And the condition precedent for invoking the jurisdiction of reopening is 'Right to believe' and not 'Right to suspect'. When the AO receives an adverse information against an assessee, the AO should make preliminary enquiries and collect material which would enable him to form an opinion that income chargeable to tax has escaped assessment and thereafter record his reason for the reopening. 8. Keeping the aforesaid well settled principle of law for invoking the jurisdiction of reopening of assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oves that the purchase shown to have been made by the assessee from these parties are bogus. Since the assessee has provided entries of the said purchase, the only inevitable conclusion to be drawn is that the assessee must have made these purchase from open markets from some parties best known to him. 11.2 Considering the above facts and circumstances and comparative position of trading results, the only fair conclusion that can be reached is that the assessee was a beneficiary of the accommodation bills issued by the party mentioned wherein, there wasn't actual delivery / physical delivery of the goods. An accommodation bill is obtained for introducing unaccounted goods into the accounted stream. Since the sales are claimed to be g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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