2020 (12) TMI 7

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....einafter referred to as "the Act‟), pursuant to reopening the assessment. 3. Briefly stated, the facts of the case are that the assessee filed his original return of income u/s 139(1) of the Act, which was processed u/s 143(1) of the Act. Thereafter, the AO received certain information from DGIT(Inv), Pune about the sales tax hawala racket. On the basis of such information, the AO recorded reasons on 19-06-2013 and issued notice u/s 148 of the Act. During the course of proceedings u/s 147 r.w.s. 143(3) of the Act, the assessee submitted the relevant evidence showing genuineness of the transactions of purchase of Rs. 8,34,600, against which, the AO had recorded reasons as bogus transactions. The AO made the disallowance u/s 40A(3....

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....sement No.2131 dt. 28/03/2013 to the CIT-I, Kolhapur's Endorsement No.3024 dt. 26/03/2013 forwarding CCIT-II, Pune's letter No.8880 dt. 15/03/2013 along with a copy of the Board's F.No.414/B/2013-IT(Inv-I), dt. 15/03/2013 (iii) Endorsement No.79 dt. 30/04/2013 to the CIT-I, Kolhapur's letter No.KOP/CIT-I/ITO(HQ.I)/Hawala/2013-14/186 dt. 30/04/2013 forwarding DGIT(Inv), Pune's letter No.2648 dt. 22/03/2013 (iv) No.KOP/Addl.CIT, R-1&2 / Bog. Hawala Case / 96/2013-14, Dt.02/05/2013 It is found that Shri Dilip Baburao Dalavi, the assessee is a beneficiary of Bogus Hawala Transactions in FY 2008-09 relevant to AY 2009-10. In the letter of the DGIT (Inv), Mumbai, it was mentioned that the Sales Tax Department of Governm....

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....of Hawala Dealer Dushyant Mangru Singh - Prop. Asian Steels PAN:AWZPS2908L TIN 27860346638V Dilip Baburao Dalavi, Prop. of Aishwarya Enterprises & Aishwarya Hi Tech Bio Remedies. 2008-09 2009-10 8,34,600/-           TOTAL -- -- -- Rs. 8,34,600/- 2.1 On verification of the records available in this office, it is found that the assesses Dilip Baburao Dalavi, Prop. of Aishwarya Enterprises & Aishwarya Hi Tech Bio Remedies who is the beneficiary from such bogus Hawala Transaction, is assessed to tax m this Ward. The details regarding the Return of income filed by the assessee for the AY 2009-10 are as under: Sr. No. A.Y. Returned Income Ack. No. Date o....

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....terial 2.3. As per the findings of the Investigation Wing and as deposed by the Seller before the Sales Tax Authorities that such sales made to the aforesaid party were bogus sales, it can evidently be said that the assesses under consideration had inflated the purchases, thereby obtaining bogus purchase bills from the said party to the extent of Rs. 8,34,600. In other words, the purchases were inflated by the assesses to claim bogus expenditure which resulted into decrease in profit to the extent of the aforesaid amount. Accordingly, the return and accounts filed by the assesses for the AY 2009-10, there was under assessment of income to the extent of the aforesaid amount of Rs. 8,34,600/- having escaped assessment within....