TaxTMI 
TaxTMI 
2018 (3) TMI 1606
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....ances of the case and the submission made, thus, reopening of assessment u/s 147 must be held bad in law and the consequent order passed by Ld. AO deserves to be held void ab initio. 1.1 That, the Ld. CIT(A) has further erred in upholding the assessment completed by Ld. AO u/s r.w.s. of Income Tax Act, 1961 merely on the basis of statements of a third party Sh. Bhanwar Lal Jain without bringing any corroborative material on record and without making proper enquires in the matter to ensure that any income of assessee has escaped assessment. Thus, appellant prays completion of assessment u/s 147 r.w.s. 143(3) must be held bad in law. 1.2. That, the Ld. CIT(A) has further erred in ignoring the fact that the assessment in the case of appellan....
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.... the order passed by Ld. AO treating the concerned purchases of Rs. 31,40,818/- as unverifiable on the basis of statements of a third party Sh. Bhanwar Lal Jain by completely ignoring that in his statements recorder during search at his business premises, he has nowhere mentioned that the sales to assessee were bogus. Thus, the action of Ld. CIT(A) in confirming the said purchases as bogus deserves to be held bad in law. 3. On the facts and in the circumstances of the case, the Ld. CIT(A) has grossly erred in confirming trading addition of Rs. 4,71,123/- being 15% of the alleged unverifiable purchases of Rs. 31,40,818/- arbitrarily, without appreciating the facts and circumstances of the case and the submission made before him. Thus, the a....
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....ome on account of purchases made by the assessee from two parties, namely M/s. Meridian Gems and M/s. Millennium Stars as bogus purchases as per the information received from the Investigation Wing, Mumbai. The AO accordingly completed the reassessment under section 143(3) read with section 147 on 31st March, 2015 making a trading addition of Rs. 7,85,204/-. The assessee challenged the action of the AO before the ld. CIT (A) and raised the objection against the reopening of the assessment. The ld. CIT (A) though confirmed the validity of reopening of assessment, however, restricted the trading addition to Rs. 4,71,123/- as against Rs. 7,85,204/- made by the AO. 3. Before us, the ld. A/R of the assessee has submitted that on perusal of reas....
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....he AO was not having jurisdiction to invoke the provisions of section 147/148. 3.1. On the other hand, the ld. D/R has submitted that after completing the original assessment, the AO received fresh information and material regarding the bogus purchases made by the assessee from these two parties and, therefore, the reopening is valid and proper. He has relied upon the orders of the authorities below. 4. We have considered the rival submissions as well as the relevant material on record. There is no dispute that the original assessment was completed under section 143(3) on 27th December, 2010 after an addition on account of unverifiable/bogus purchases was made by the AO. Thus it is manifest from the record that the AO while completing the....
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....e purchases including the two parties, namely M/s. Maridian Gems and M/s. Millennium Star. Even if the subsequent information received from the DIT Investigation Wing Mumbai renders the assessment order passed under section 143(3) defective and erroneous for want of proper verification and investigation, the same would not turn the case in the category that the assessee has failed to disclose fully and truly all the particulars necessary for assessment. It is not the case of the AO that the assessee has not furnished the requisite documents and details of purchase rather the AO conducted a detailed enquiry during the original assessment on the issue of genuineness of purchases. Thus the information received by the AO from Investigation Wing....