2017 (10) TMI 1557

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.... In the facts and circumstances of the case and in law, the Id. CIT(A) has erred in not holding that the reopening u/s 147 is unjustified, unwarranted, illegitimate and hence, bad in law. GROUND NO. 2 The Id. CIT(A) has erred in making and confirming the addition of Rs. 39,78,000 thereby holding the same to be the peak credit. The Id. CIT(A) has failed to consider that: 1. There are no bogus purchases. 2. The assessee has provided and furnished all the documents necessary for the purpose of proving that its purchases are genuine. 3. The onus is on the Revenue to prove that the purchases are bogus. 4. The fact that the purchases are bogus must be proved by way of corroborative evidence.....

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.... 8.We have considered rival contentions and carefully gone through the orders of the authorities below. 9. It was argued by learned AR that original assessment proceedings was completed u/s.143(3) wherein all the details of purchases as called by the AO was furnished and AO was satisfied with the genuineness of purchases. Therefore, reopening was not justified. On merits of the addition he relied on the order of the Co-ordinate Bench in case of Steel Line (India) order dated 29/08/2017 in ITA No.1321/Mum/2016, 1322/Mum/2016 and 1323/Mum/2016 wherein Tribunal has observed as under:- "We have considered rival contentions and carefully gone through the orders of the authorities below and also deliberated on the judicial pronouncem....

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....he AO has accepted the corresponding sales made by the assessee. Books of Accounts were not rejected. However, he has added the peak credit in respect of such purchases in assessee's income. By observing that only profit element embedded in bogus purchase which the assessee would have made, should be added in the assessee's income, the CIT(A) has restricted the addition to 12.5% of such purchases. So far as reopening is concerned, we found that sufficient reasons were recorded by AO and he was justified in reopening the assessment. 11.From the record, we found that during the year under consideration the assessee had offered higher GP. GP of last two years of the assessee was at 8.39% and 8.36%. During the year under consideration GP sho....