TaxTMI 
TaxTMI 
2022 (12) TMI 375
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.... Tax Officer- 20(2)(5), Mumbai (hereinafter referred to as ld. AO). 2. The ground No.1 raised by the assessee is on violation of principles of natural justice. 2.1. The ground No.2 raised by the assessee is challenging the validity of re-assessment u/s.147 of the Act. 2.2. The ground No.3 raised by the assessee is challenging the addition made on account of ingenuine purchases in the sum of Rs.1,08,04,800/-. 3. None appeared on behalf of the assessee. In fact, this appeal was preferred by the assessee on 24/01/2020. Thereafter, the appeal was listed for hearing on 11/08/2021, 27/09/2021, 22/11/2021, 06/01/2022 and finally adjourned to 11/04/2022. We find that on none of these occasions, the assessee secured his presence in person or thr....
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.... sought to be reopened u/s.147 of the Act and notice u/s.148 of the Act was issued and served on 31/03/2015 after due recording of reasons by the ld. AO. In the reasons recorded, the ld. AO mentioned that there was an information received from DDIT Investigation, Mumbai that a person named Shri Bhanuram Aidanji Desai (B A Desai) had opened bank accounts in various names and had the practice of opening bank accounts and closing the same within a short period of time. Since assessee had certain transactions with that person to the tune of Rs.1,08,04,800/- by way of ingenuine purchases, the ld. AO observed that income of the assessee had escaped assessment within the meaning of Section 147 of the Act. The law is very well settled that sufficie....
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.... 19 were duly complied with by the ld. AO in the instant case. Hence for the aforesaid reasons, we hold that the ld. AO had validly assumed his jurisdiction for reopening the assessment u/s.147 of the Act. Accordingly, the ground No.2 raised by the assessee is hereby dismissed. 3.2. The ld. AO observed that assessee had booked bogus expenditure to the tune of Rs.1,08,04,800/- through the bank accounts of the concerns viz. M/s. Balaji Enterprises, M/s. Oswal Traders, M/s. Jay Ambe Trading Company, M/s. Ramdev Bullian which are also managed and controlled by Shri B.A. Desai. The ld. AO observed that the amounts credited in the bank accounts of these concerns are withdrawn in cash immediately or withdrawn after transferring the same to other ....
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....see with M/s. Balaji Enterprises. Even though it has been recorded in the orders of the lower authorities that soon after the cheques are deposited in the bank account of M/s. Balaji Enterprises, the amounts were withdrawn in cash, there is absolutely no evidence brought on record by the lower authorities to prove that the said cash had been handed over to the assessee. In other words, there is no evidence brought on record to prove the cash trail with the purchases made by the assessee warranting making of disallowance of purchases. However, the assessee also had not discharged its onus beyond doubt in as much as the assessee was not able to explain as to why the notice u/s.133(6) of the Act could not be served on the addresses given by th....