TaxTMI 
TaxTMI 
2019 (2) TMI 2035
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....ome Tax Act, 1961 (for short "the Act"). 3. Brief facts are, the assessee is an individual. He carries on business of trading in ferrous and non-ferrous metals through his proprietary concern M/s. Trison Impex. For the assessment year under dispute, the assessee filed his return of income on 19th August 2009, declaring total income of Rs. 6,02,999. The assessment in case of the assessee was originally completed under section 143(3) of the Act vide order dated 20th December 2011, determining the total income at Rs. 1,95,37,050. After completion of the original assessment as aforesaid, proceedings under section 153C of the Act was initiated against the assessee on the basis of information / material found in a search and seizure operation co....
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....He submitted, in case of the assessee not only the original assessment was completed under section 143(3) of the Act but subsequently, assessment for the impugned assessment year was also completed under section 153C of the Act. Therefore, he submitted, re-opening of assessment under section 147 of the Act after expiry of four years from the end of the relevant assessment year is invalid, since, there is no failure on the part of the assessee to disclose fully and correctly all material facts relating to his assessment. The learned Authorised Representative submitted, though information relating to the bogus purchases was available before the Assessing Officer during the proceedings under section 153C of the Act, still the Assessing Officer....
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....On the basis of such information, the Assessing Officer has re-opened the assessment under section 147 of the Act. Thus, it is evident, the Assessing Officer had tangible material before him to form the belief that income chargeable to tax has escaped assessment. It is also seen from record that challenging the re-opening of assessment assessee had raised objections before the Assessing Officer. However, before completion of the assessment, the Assessing Officer has disposed off the objections of the assessee through a separate well reasoned order. As regards the contention of the assessee that there being no failure on the part of the assessee to disclose fully and truly all material facts relating to the assessment the re-opening of asses....
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....er documentary evidences. Therefore, he treated the purchases as non-genuine. However, he restricted the addition on account of non-genuine purchases by applying gross profit rate of 3.13% which worked out to Rs. 11,99,031. 9. While considering assessee's appeal on the aforesaid addition made by the Assessing Officer, learned Commissioner (Appeals) enhanced the gross profit rate to 5% resulting in addition of Rs. 19,15,386. 10. The learned Authorised Representative submitted, while deciding identical issue on account of non-genuine purchases, the Trbunal has restricted the addition to 2% in assessment year 2007-08, 2008-09 and 2011-12. Thus, he submitted, the addition should be restricted to 2% of the alleged non-genuine purchases. 11. T....