2023 (1) TMI 717

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....come Tax Act, 1961 passed by the DCIT, Circle 2(1), New Delhi (hereinafter referred to as the Assessing Officer or 'AO'). 2. The facts of the case are original assessment was completed u/s 143(3) of the Income Tax Act, 1961 vide order dated 13.03.2013 at total income of Rs. 26,90,450/- against the declared income of Rs. 23,18,390/-. In this case, further information was received from assessing officer ward- 19(3), New Delhi that M/s. Stans networking Pvt. Ltd. has done sales transactions during the A.Y. 2010-11 for Rs. 23,71,061/- with the assessee. Subsequently, the assessment was reopened under section 148 and was reassessed by making further addition of Rs. 23,71,061/- on account of bogus purchases. Assessment was completed at income of....

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....at Ld. AR has restricted argument to issue no. 1, 2 and 4 and did not press ground no. 3. 5. It was submitted on behalf of the assessee by ld. AR that the orders of the Ld. Tax Authorities below are devoid of any legality and merit. It was submitted that the assessment of assessee u/s 143(3) was completed on 13.03.2013 wherein all the aspects of return of income were explained. Referring to page no. 36 to 37 of the paper book it was submitted that Ld. AO had issued a questionnaire dated 27.09.2012 whereby vide query no. 14 assessee company was specifically directed to explain purchase / direct expenses of Rs. 20,00,000/- and above during the relevant financial year and assessee had given all the details of purchase of vinyl sheets from dis....

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....making a true and complete disclosure and the satisfaction recorded is not sustainable. 5.3 In support of aforesaid contentions the Ld. AR relied following case laws : i. Calcutta Discount Co. Ltd. V. ITO 41 ITR 191 (SC) ii. PCIT V. Superior Films Pvt. Ltd. (Delhi HC) iii. Pr. Commissioner of Income-Tax Vs. Light Carts P. Ltd. 404 ITR 574 (Allahabad HC) iv. In Commissioner of Income Tax vs. M/s. Jet Speed Audio Pvt. Ltd. (Bombay HC) v. CIT vs. Usha International Ltd. [TS-29-HC- 2012(Del.) dated 21.08.2012 (Delhi HC) vi. Indian and Eastern Newspaper Society Vs. Commissioner of Income Tax, New Delhi, (119 ITR 996) (Hon'ble Supreme Court) 6. On the other hand, Ld. DR submitted that there is no error in the findings of Ld. Tax Aut....

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....ssessee company attended the proceedings from time to time and explained the case and furnished the details, as required. The details have been verified and placed on record." Thus, issue of purchases were duly examined and the sales and purchase were admitted to be without any dispute while concluding the assessment u/s 143 of the Act on 13.03.2013. 9. It is further not disputed that when the assessment of M/s. Stans Networking Pvt. Ltd. was completed on 26.03.2013 u/s 143(3) as available on page no. 79 of the paper book the Ld. AO of that assessee ITO, Ward- 9(2), New Delhi had made addition on protective basis for the alleged and suspicious sales in favour of various parties including the present assessee. At the same time, intimation ....

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....er book wherein without referring to letter dated 01.04.2013 from ITO, Ward- 9(2), New Delhi. Ld. AO merely reproduced the intimation by referring to the intimation as "now, information is received from ITO, Ward-19(3), New Delhi". This astuteness of Ld. AO in not mentioning the date of the intimation makes the reopening reasons tainted with arbitrainess and the satisfaction recorded cannot be considered to be based on any new information. 12. It can be further appreciated that Ld. CIT(A) while passing the impugned order sought a remand report with regard to ledger accounts, copy of invoices, copy of bank statements and the physical evidences in the form of photographs of the goods purchased from Stans Networking Pvt. Ltd. and Ld. AO vide ....