TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 1819
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....as raised in connection with recording of wrong facts for initiation of reassessment proceedings. It is therefore sincerely requested that the whole proceedings may please be declared null and void. 2. That the ld. CIT(A) has erred seriously on facts in sustaining an addition of Rs. 5,49,645/- being 15% of alleged bogus purchases as against an addition of Rs. 9,16,075/- being 25% of alleged bogus purchases of Rs. 36,64,300/- and hence allowing only a relief of 10% of such alleged bogus purchases. Relief may please be provided by deleting the addition of Rs. 5,49,645/- sustained by ld. CIT(A). 3. That the ld. CIT(A) erred on facts in holding that the alleged bogus purchases is through accommodation entries only, without carrying his inde....
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....he above named party where no such office was found and hence the ld. AO inferred that the appellant had purchased goods from some other party and took accommodation bills from the above named party. Accordingly he disallowed a sum of 25% of alleged unverifiable purchases and added the same to income of the appellant. 3.1 It was further submitted that on appeal before the ld. CIT (A), the latter's attention was drawn to the order of this Bench of ITAT in the case of M/s. Allied Gems Corporation (ITA No. 794/JP/2011) wherein it was held that in such cases, estimation of correct income of the assessee has to be made on the basis of past history of the appellant. However, the ld CIT(A) not fully convinced with the same reduced the disallowanc....
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.... this case, the reasons as made available to the Respondent Assessee as produced before the Tribunal merely indicates information received from the DIT (Investigation) about a particular entity, entering into suspicious transactions. However, that material is not further linked by any reason to come to the conclusion that the Respondent Assessee has indulged in any activity which could give rise to reason to believe on the part of the Assessing Officer that income chargeable to tax has escaped Assessment. It is for this reason that the recorded reasons even does not indicate the amount which according to the Assessing Officer, has escaped Assessment. This is an evidence of a fishing enquiry and not a reasonable belief that income chargeab....
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....ch circumstances all the proceedings undertaken u/s 147 & 148 are liable to be quashed. Such view was held by the Jaipur Tribunal in the case of Narain Dutt Sharma v. Income-tax Officer, Ward- 6 (1), Jaipur (ITA NO. 203/2017 vide order dated 07.02.2018) wherein it was held :- "We have heard the rival contentions and purused the material available on record. Firstly, it is noted that in the instant case, the notice under section 148 in exercise of powers under section 147 has been issued on 23.03.2014 after the expiry of period of four years from the end of the impunged assessment year i.e, AY 2007-08. In terms of proviso to section 147 of the Act, an action under the said provisions can be taken by reason of failure on the part of the ass....
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....ashed. 4. The ld. DR has vehemently argued the matter and has relied on the order of the lower authorities. 5. We have heard the rival contentions and perused the material available on record. On perusal of the reasons so recorded by the AO before issuance of notice u/s 148 of the Act, we find that on the basis certain information received from the Investigation Wing Mumbai, the AO has not just formed an opinion but has finally concluded that the assessee has benefitted by obtaining accommodation entries from M/s New Planet Trading Co Ltd. Further, the AO has stated that since the assessee has not filed the return of income as per AST system of the department, he has reasons to believe that income has escaped assessment. To our mind, such....