TaxTMI 
TaxTMI 
2009 (12) TMI 629
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....ach of the three assessment years was supplied to the petitioner and the petitioner has raised its objections to the reopening of assessment. The objections raised by the petitioner are dealt with by the Deputy Commissioner of Income Tax, Circle-I, Ahmedabad and the said objections were overruled by him, and being aggrieved by the said order, the present petitions are filed by the petitioner. Heard Mr. Tushar P. Hemani, the learned advocate appearing for the petitioner. He has raised mainly two objections against the notice of reopening. The first objection raised by him is that the reasons have been recorded by the Income Tax Officer, Ward 1(4), Ahmedabad, Shri S.K.Suthar, whereas the impugned notices have been issued by Shri S.K.Katiya....
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....m M/s Bhoomi Corporation, and still, the reasons recorded indicate that the petitioner has made such disputed purchases from the above referred two parties. It is therefore submitted that there is a total non-application of mind while recording the reasons. So far as the first two years are concerned, the petitioner has not made any purchases from the said two parties and did not claim any expenditure towards purchases being made from the said two parties. He further submitted that the petitioner has not claimed any purchase made from the two parties, and if this is the situation, there is no question of disallowing under the provisions of Section 40A(3) of the Act and resultantly no question of escapement of any income as alleged or for th....
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....he reasons, it is specifically stated that survey under Section 133A of the Act was carried out on 10.8.2007. The ADIT (Inv.), Unit-1(1), Ahmedabad vide letter dated 28.3.2008 has intimated that the assessee company has obtained bogus purchase bills from M/s Bhoomi Corporation and M/s Shyam Steel. The ADIT has further stated that the assessee company has accepted that they have resorted to purchase of raw material in cash from outside parties based in Mumbai. In view of the admission of the assessee company regarding purchase made in cash exceeding Rs.20,000/-, provisions of Section 40A(3) of the Act are applicable and disallowance to the extent of 20% of such expenditure as claimed by the assessee company in its books of accounts are requi....
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....s were made by the petitioner. In the reasons recorded, it is specifically observed that the purchases were made from the various parties. Even if no purchases have been made from these two parties, it is to be inquired and investigated as to whether purchases are made from other parties and whether those purchases are made in cash or by cheque. Even, so far as these two parties are concerned, it is only when survey was carried out and bogus purchases were detected, the explanation have come forward that they have not made any purchase from these parties and only bogus bills were raised. However, subsequently, the amount was received back. This shows the conduct of the petitioner, and when such conduct is found on the face of the record, th....
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....or the said years were held to be invalid. So far as the present case is concerned, the notices were issued by Mr. S.K.Katiyar whereas the reasons were recorded by Mr. S.K.Suthar. Both are the Income Tax Officer, Ward 1(4), Ahmedabad. Mr. Katiyar, while issuing notice has specifically stated in the opening of the said notices that he had reason to believe that income for the assessment year 2004-2005 has escaped assessment. He has also stated that the notice is issued after obtaining necessary satisfaction of the Commissioner of Income Tax, Ahmedabad-1, Ahmedabad. The Court is therefore of the view that there is no dispute about the fact that Mr. Katiyar while issuing the notice has indicated his satisfaction and since he was in agree....