https://www.taxtmi.com/caselaws?id=314325 ITAT Surat upheld the validity of reassessment proceedings under section 147 initiated based on credible information from DGIT (Inv.), Mumbai regarding bogus purchases by the assessee. The tribunal held that prima facie material was sufficient to commence proceedings, and the assessee cannot escape liability after making false statements during original assessment. However, regarding income estimation from bogus purchases, the tribunal restricted the addition to 5% of total bogus purchases instead of the entire amount, following precedent from Mayank Diamonds case and considering industry profit margins. The appeal was partly allowed with reduced addition sustained. en-us Thu, 18 Jul 2019 00:00:00 +0530 Fri, 31 May 2024 21:36:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=314325 ITAT Surat upheld the validity of reassessment proceedings under section 147 initiated based on credible information from DGIT (Inv.), Mumbai regarding bogus purchases by the assessee. The tribunal held that prima facie material was sufficient to commence proceedings, and the assessee cannot escape liability after making false statements during original assessment. However, regarding income estimation from bogus purchases, the tribunal restricted the addition to 5% of total bogus purchases instead of the entire amount, following precedent from Mayank Diamonds case and considering industry profit margins. The appeal was partly allowed with reduced addition sustained. Case-Laws Income Tax Thu, 18 Jul 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=314325