2016 (6) TMI 491

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....ons which read as under: "In this case, the return of income for A.Y. 2008-09 has been efiled by the assessee on 27.09.2008 declaring total income of Rs. 11,56,221/-. 2. The survey action u/s. 133A of the Act was conducted as on 10.04.2008. During the survey action inventory of stock and cash was taken. As per the impounding order dated 10.04.2008 purchase/sales bills were found. The hard disc of back up was found and impounded. The statement of Shri Sitaram Sharma Vice President of the company was recorded. 3. The assessment was completed u/s 143(3) r.w.s. 147 on 30/12/2010 assessing the total income at Rs. 13,28,190/-. 4. It is seen from the record that the assessee has purchased goods worth Rs. 80,51,932/- from M/s. Cedar D&e....

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....earned counsel for the parties and perused the documents on record. We may recall that the notice for reopening has been issued beyond the period of four years or the end of the relevant assessment year. In this context, the requirement that the income chargeable to tax has escaped assessment due to the reason of failure on part of the assessee to disclose truly and fully all materials facts would become relevant. The reasons recorded nowhere suggest that there was any failure on part of the assessee to disclose material facts. In fact, in the reasons, the Assessing Officer has mentioned that "It is seen from the record that... ... ...". Thus, all necessary materials were available on record on the basis of which, the Assessing Officer now ....

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.... the same has been sold to Home Depot for Rs. 80,51,932/- immediately. This has resulted in over-invoicing of purchases in Home Depot by the similar amount and thereby understatement profit. Please Explain why this over invoicing of Purchase of Rs. 31,49,963/- should not be taxed in assessment of Home Depot India Pvt. Ltd. for 2008-09. Please also provide the Sales & Purchase details & stock statements for A.Y. 2003-04 to 2007-08 to ascertain the over invoicing in Earlier Years. Your reply in this regard should reach to this office on or before 05/12/08. Please note that, failure to comply with this letter within the given time, the same will be completed on merits on the basis of details available on record." 5. In response to ....