AI Drafter 
TaxTMI 
TaxTMI 
2020 (2) TMI 504
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....in relation to the additions made/deleted on account of non-genuine purchases. 3. Brief facts, more or less common in these appeals are, the assessee is a Hindu Undivided Family (HUF) and is engaged in the business of trading in TMT Bars, Steel, etc. For the assessment year 2010-11, the assessee filed its return of income on 12th February 2011, declaring total income of Rs. 4,29,750. Similarly, for the assessment year 2011-12, the assessee filed its return of income on 24th September 2011, declaring total income of Rs. 5,07,944. The returns of income so filed were initially processed under section 143(1) of the Act. Subsequently, on the basis of information received from the Sales Tax Department, Government of Maharashtra, through the O/....
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....eturned back un-served due to absence of the selling dealers in the given address. The Assessing Officer further observed, even the assessee in spite of being called upon to produce the concerned selling dealers could not do so. Due to the aforesaid reasons, the Assessing Officer ultimately concluded that the purchases made in both the assessment years are non-genuine. However, relying upon certain judicial precedents, he held that only profit element embedded in such purchases has to be added. Accordingly, he estimated such profit element @ 12.5% on the bogus purchase in both the assessment years and made the following additions:- A.Y. 2010-11 Rs. 6,49,007 A.Y. 2011-12 Rs. 6,80,464 Contesting the aforesaid additions, assesse....
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.... Authorised Representative submitted, the Assessing Officer has re-opened the assessment simply relying upon the information received from the O/o the DGIT (Inv.), Mumbai, without independently applying his mind. She submitted, no tangible material has come to the possession of the Assessing Officer to form belief that income has escaped assessment. Therefore, she submitted, re-opening of assessment under section 147 of the Act is invalid. As regards the merits of the issue, the learned Authorised Representative submitted, in course of assessment proceedings, the assessee has furnished all relevant and necessary evidences to prove the genuineness of purchases made during the year. She submitted, apart from purchase bills, bank statement, le....
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....Representative submitted, while deciding identical issue in case of Prabhat Gupta (Individual), the Karta of the HUF, who is also in the similar line of business, in the assessment years 2009-10, 2010-11 and 2011-12, the Tribunal having found that the purchases are supported by valid documentary evidences, has fully deleted the addition made by treating such purchases as non-genuine. In this context, he drew our attention to the aforesaid orders of the Tribunal. Thus, she submitted, facts being identical, following the aforesaid decision of the Tribunal the entire addition should be deleted. 7. The learned Departmental Representative submitted, the Assessing Officer having re-opened the assessment on the basis of specific information ava....
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....e contrary, tangible material has come to the possession of the Assessing Officer subsequently revealing escapement of income on account of non-genuine purchases. There is no dispute that on the basis of such material, the Assessing Officer has re-opened the assessment under section 147 of the Act. That being the case, we do not find any merit in the grounds raised by the assessee challenging the validity of the re-opening of the assessment under section 147 of the Act, hence, dismissed 9. As regards the merits of the issue, undisputedly, the assessee is a trader in TMT Bars and Steel. On a perusal of the assessment order it is evident that in response to the query raised by the Assessing Officer with regard to the disputed purchases, th....
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....ed to the end customer. The sales effected by the assessee to end customer is supported by sales bills, transportation receipt, etc. Further, in the course of assessment proceedings, the assessee has furnished account confirmation from the selling dealers. The Assessing Officer, however, has not cross verified all these documentary evidences through proper enquiry. The Assessing Officer has simply issued notices under section 133(6) of the Act and on not receiving any response from the concerned party he has kept quiet and not carried out any further enquiry to verify the authenticity of the documentary evidences filed before him. Learned Commissioner (Appeals) has also not conducted any enquiry himself to verify the genuineness of the docu....