TaxTMI 
TaxTMI 
2023 (9) TMI 878
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.... Ld. CIT(A) gravely erred in upholding the addition without appreciating the import of detailed submissions made and the fact that the appellant had discharged its onus with respect to the purchase of Rs. 1,27,23,330/- and also the fact that the appellant was maintaining complete quantitative tally of the goods dealt in. 3. Brief facts of the case are that the return of income for Assessment Year 2010-11 was e-filed by the assessee on 27.09.2010 showing loss of Rs. 1,75,33,442/-. Subsequently, the assessment was completed u/s 143(3) of the Act vide order dated 29.12.2012. Subsequently, the AO has reopened the case on the information that the assessee is recipient of bogus purchases bills from M/s Mahavir Hosiery Works for a purchases of Rs. 1,27,23,330/-. The AO noted that the assessee has inter-alia informed that there is no failure on the part of the assessee to disclose necessary facts and all information and details were submitted during the course of regular assessment for AY 2010-11, which was completed u/s 143(3) of the Act on 29.12.2012. However, the AO was not convinced and made the impugned addition by observing as under:- "6. Assessee's submissions were c....
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....ter was never made available to the assessee. This proposition, the ld. DR could not rebut. Thus, it is evident that some information from another Assessing Officer is the basis on which the AO formed his satisfaction that some of the income the assessee has escaped assessment. Thus, the contention of the assessee is correct that the AO without making any independent enquiry but on his own has started proceedings u/s 148 of the Act merely on the basis of some information received from some other Income Tax Officer. This makes initiation of proceedings is bad in law. 8. Furthermore, the ld. Counsel for the assessee has informed that the assessee duly objected to the issue of notice u/s 148 of the Act vide letter dated 13.11.2017 filed before the AO. Thus, in the reasons recorded, neither there is any discussion nor anything has been brought on record that which particular transactions relating to purchases made by the assessee from M/s Mahavir Hosiery Works, Ludhiana is not genuine or bogus. Thus, merely on the basis of the report of the Income Tax Officer, Ward-2(2), Ludhiana, the details of which was never made available to the assessee nor before us, the AO has formed his opin....
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.... was no independent application of mind by Assessing Officer to tangible material and, conclusions of Assessing Officer were reproduction of conclusion in investigation report, reasons failed to demonstrate link between tangible material and formation of reason to believe that income had escaped assessment and, consequently, reassessment was unjustified - Held, yes [Paras 36 and 37] [In favour of assessee]" 3. SABH Infrastructure Ltd. vs Assistant Commissioner of Income Tax [2018] 99 taxmann.com 409 (Del.) "Section 68 of the Income-tax Act, 1961 - Cash credit (Share application money) - Assessment year 2008-09 - Where during assessment proceedings assessee had disclosed all relevant information regarding companies from which it had received share application money and Assessing Officer had not doubted such transaction, mere statement of an entry operator that companies in question were 'paper companies', by itself was insufficient to reopen assessment, unless Assessing Officer had further information that those companies were non-existent after making further inquiries into matter [In favour of assessee] During assessment proceedings the assessee ....
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.....27 Please furnish the details of the top 20 parties each from whom purchases were done and from whom sales were made during the F.Y. 2009-10 in the form of name, address and purchases/sales amount. 10.1. The assessee duly replied to both the queries and necessary information was given. Even during the reassessment proceedings, the assessee had given detailed reply dated 22.11.2017 along with relevant details which are available at paper book pages 72 to 74. Other details supplied by the assessee are as under:- a) Details of purchases made from M/s Mahavir Hosiery Works during the year -page 75 b) Copies of bills an store reports in respect of purchases made from M/s Mahavir Hosiery Works - Pages 76-105. c) Copy of certificate from HDFC Bank regarding payment made to M/s Mahavir Hosiery Works- page 106 d) Copy of bank statements clearly highlighting the payments made to M/s Mahavir Hosiery Works - Pages 107-112 e) Copy of ledger account of M/s Mahavir Hosiery Works in the books of the Appellant Company - Page -113 f) Quantity wise tally knitted clot for the year under consideration - Page-115 11. As evident from the order ....