TaxTMI 
TaxTMI 
2018 (12) TMI 1128
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....rcumstances of the case and in law the Ld. AO has erred in assuming the jurisdiction of reassessment based on the satisfaction note, which was mechanically drawn by the AO, on the basis of letter by the CIT dated 07.03.2014, (enclosed letter of Director General of Income Tax (Inv.) Mumbai), without proper investigation at his level and application of his mind for the escapement of income, which was the basic ingredient of invoking section 147. 2. Because the AO on the facts and circumstances of the case and by law has erred to assume the jurisdiction in the absence of proper investigation of the purchases by concluding it as a bogus purchase/ accommodation entry on the mere absence of telephone number and VAT number on the invoices....
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.... 568020/- from M/s Mohit international, Surat. Therefore, reasons were recorded under section 147 of the act on 26/ 3/ 2014 forming a belief that income of Rs. 568020/- has escaped assessment. The sanction of the joint Commissioner of income tax was also sought and granted. Consequently, notice under section 148 of the income tax act was issued on 28/3/2014, which was served on the assessee on 29/3/2014. The assessee by letter dated 16/4/2014 informed that the return of income originally filed on 7/11/2007 to be treated as return filed in response to notice under section 148 of the income tax act. Subsequently, notice under section 143 (2) was issued on 30/4/2014 in response to which the requisite details were filed. 6. On examination of....
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....ted in a hurriedly manner. In view of this the learned AO made an addition of Rs. 568020 on account of bogus purchase and added the commission of Rs. 11360/-. Accordingly the assessment under section 147 read with section 143 (3) of the act was passed on 18/3/2015 at Rs. 645893/- against the returned income of Rs. 66513/-. 7. The assessee aggrieved with the order of the learned assessing officer preferred an appeal before the learned commissioner of income tax appeals - 18, New Delhi. The learned commissioner appeals disposed of the appeal of the assessee vide order dated 10/4/2017 who held that the addition in the hands of the assessee should be restricted to around Rs. 90,000 on the basis of the gross profit percentage of sales in case....
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....nd frequent international travel of the assessee, we are convinced that the delays caused for sufficient cause. Even there is no deliberate attempt shown on behalf of the assessee in not filing the appeal. Even otherwise we are of the opinion that assessee does not get any benefit in causing delay in filing of the appeal. In view of this we condone the delay and admit appeal of the assessee. 11. The learned authorised representative vehemently submitted before us that the a. reopening has been made merely on the basis of the statement of 1/3 party without any investigation made by the learned assessing officer he further submitted that that there is no connection between the Mohit international and the entry operator shown by....
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....hich are found to be bogus. Further assessee has not shown that M/s Mohit international had stock in trade is on the date of making sales to the assessee firm. He further is submitted that assessee has also failed to show any ticket/travel bill/boarding pass and hotel accommodation bills. The learned DR vehemently supported the orders of the lower authorities. 13. We have carefully considered the rival contention and perused the orders of the lower authorities. On the issue of the reopening of assessment we have carefully produce the reasons recorded by the learned assessing officer, which are placed at page number 33 of the paper book. The reasons recorded shows that assessee has received an accommodation entry from Mohit internation....
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....squarely covered by the decision of the honourable Gujarat High Court in tax appeal number 691 of 2017 dated 18/9/2017 in case of Tejua Rohitkumar Kapadia against which the SLP has been dismissed by the honourable Supreme Court wide order dated 4/5/2018. In any case, the learned commissioner of income tax has also added the gross profit only with respect to the alleged bogus purchase of the goods. When the sales are already accounted for in the books of accounts then once again making an addition of the gross profit will amount to double addition. In view of this we hold that when the assessee has already shown gross profit in the books of account on sale of those goods which are allegedly purchased from an accommodation entry provider n....