TaxTMI 
TaxTMI 
2019 (3) TMI 1621
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....nds of appeal filed by the assessee read as under: 1. Ld. CIT(A) erred in upholding reopening proceedings. 2. The Ld. CIT(A) erred in confirmed additions of Rs. 33,46,408/- computed @ 12.5% on purchases of Rs. 2,67,71,269/-. The addition of Rs. 33,46,408/- confirmed by the Ld. CIT(A) be deleted and assessed income be reduced accordingly. 3. Briefly stated, the facts are that the assessee filed its return of income for the assessment year (AY) 2008-09 declaring total income at Rs. 81,48,858/-. The return was processed u/s 143(1) of the Act. Thereafter, the Assessing Officer (AO) reopened the case by issuing notice u/s 148 dated 25.02.2015, which was duly served on the assessee. The AO reopened the assessment on the ba....
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....ssessee. 4. In appeal, the Ld. CIT(A) upheld the reopening done by the AO by issuing notice u/s 148 on the ground that there was tangible material available with the AO at the time of reopening the assessment in the form of information received from Director General of Income Tax (Inv.), Mumbai. Also the Ld. CIT(A) held that as the assessment was reopened on the basis of evidence collected and statements recorded by the Sales Tax Department, the AO had reason to believe that income has escaped assessment and therefore, there is no change of opinion in the present case. With the above observations, the Ld. CIT(A) dismissed the ground of appeal filed by the assessee against reopening by issuing notice u/s 148 of the Act. Also the Ld. CI....
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.... Jain Group and other groups on whom search action u/s 132 of the Act was conducted by the Director General of Income Tax (Inv.), the statements given by these parties are general in nature. The Ld. counsel argues that the AO has failed to point out whether any of the party who gave the statement before the Director General of Income Tax (Inv.), Mumbai named the assessee to whom they have provided any accommodation bills. Thus it is stated that the action of the AO is merely based on the findings of the Director General of Income Tax (Inv.), Mumbai, without independent inquiry about the escapement of income by the assessee and without any corroborative evidence to arrive his own satisfaction of escaped income, which is bad in law. Thus the ....
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....e clauses (a) and (b) laid down the circumstances under which income escaping assessment for the past assessment years could be assessed or reassessed. To confer jurisdiction under section 147(a) two conditions were required to be satisfied firstly the Assessing Officer must have reason to believe that income profits or gains chargeable to income tax have escaped assessment, and secondly he must also have reason to believe that such escapement has occurred by reason of either (i) omission or failure on the part of the assessee to disclose fully or truly all material facts necessary for his assessment of that year. Both these conditions were conditions precedent to be satisfied before the Assessing Officer could have jurisdiction to issue no....
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.... it, the assessee filed the following reply as mentioned at para 4.3 of the assessment order and we produce at below: "4.3 In response, assessee has submitted letter in respect of details of transactions with the above parties along with copies of invoices, purchase order, bank advice for having payment made against these purchases, confirmation from purchase party etc. Assessee has also submitted documents related to sales effected against the purchases made from the above parties." At para 4.4 of the assessment order, the AO has mentioned that "the details submitted by the assessee have been carefully perused, however, not found to be acceptable." Thereafter, the AO has narrated the statement of Rajendra Jain Group & Other Gro....