TaxTMI 
TaxTMI 
2020 (1) TMI 1442
X X X X Extracts X X X X
X X X X Extracts X X X X
....n of Rs. 8 lacs on account of alleged bogus bill in the name of M/s. Vee Gee Industrial Enterprises. 2. The facts in brief are that the assessee has filed its return of income on 15.09.2009 declaring income of Rs. 51,46,341/-. The said return was duly processed u/s. 143(1). Later on, information was received from the office of ADIT (Inv.)-II, Faridabad dated 23.03.2016 along with bank statement of the assessee wherein assessee-company had issued a cheque in favour of M/s. Vee Gee Industrial Enterprises. As per the said information, M/s. Vee Gee Industrial Enterprises was mainly engaged in large value credits from the business and individuals in other banks followed by immediate cash withdrawals. On inquiry, it was found that no such busine....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ness is carried out by M/s Vee Gee Industrial Enterprises. Perusal of bank a/c statement also reveals that there is no payment of any statutory nature like payment of VAT / Excise duty etc. M/s Vee Gee Industrial Enterprises is into trading of iron and steel as per KYC, but no freight payment can be observed from the bank records. Prima facie, no payment of administrative nature can also be seen from the perusal of bank records. From this entire pattern it appears to be a case of bogus billing. Details of cheque / RTGS issued in favour of M/s. Vee Gee Industrial Enterprsies are as under :- S. No. Amount Cheque No. Date 1. 8,00,000 559394 08/08/2008 3. Therefore, I have reason to believe that income chargeable to tax has esca....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rchase bills, copy of computation of total income, audited final accounts, etc. However, ld. Assessing Officer based on material on record and inquiry carried out by the Investigation Wing and failure to comply with the summons issued u/s.131, came to the conclusion that purchase is bogus and made the addition of Rs. 8 lacs. 4. Ld. CIT(A), first of all, dismissed the assessee's objection for validity of reopening u/s.147 holding that Assessing Officer has not acted mechanically before framing the reason to believe and has applied his mind and considering the information before him after taking due approval. Since there was a specific detail in the information of the amount and in respect of entity from whom the assessee has taken accommod....
X X X X Extracts X X X X
X X X X Extracts X X X X
....es, purchase bills, details of VAT and TIN number of the supplier, the source of these purchases are from books. Once corresponding sale have been accepted, therefore, no addition on account of bogus purchases can be made. Alternatively, he submitted that entire purchases cannot be made and GP rate can be applied here in the case of the assessee @ 6%. 8. On the other hand, ld. DR strongly relied upon the order of the Assessing Officer and CIT (A) and submitted that it is a clear case of accommodation entry and even the notices sent to the party remained uncomplied with. 9. We have heard the rival submissions and also perused the relevant findings given in the impugned orders as well as the material placed on record. From the perusal of th....