TaxTMI 
TaxTMI 
2023 (9) TMI 878
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....New Delhi is against law and facts on the file in as much as he was not justified to arbitrarily uphold the action of the Ld. Assessing Officer in initiating proceedings us 147 of the Act. 2. That he was further not justified to arbitrarily uphold the action of the Ld. Assessing Officer in making an addition of Rs. 1,27,23,330/- on account of alleged bogus purchase. 3. That the 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 re....
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....osed copies of certain bogus bills issued by the said Shri Raj Kr. Gupta to M/s R.K. Machine Tools Ltd and from these details, it is established beyond doubt that M/s R.K. Machine Tools Ltd indulged in bogus purchases through the firm M/s Mahavir Hosiery Works during AY 2010- 11. 7. In view of the facts narrated above & considering the report submitted by IT Ward 2(2), Ludhiana and also considering the findings given by ITO Ward 2(2), Ludhiana while framing the assessment order of Shri Raj Kumar Gupta & Mahavir Hosiery Works for AY 2010-11, the total purchases made by M/s R.K. Machine Tools Ltd. from M/s Mahavir Hosiery Works Ludhiana, throught he said Shri Rajkr. Gupta, amounting to Rs. 1,27,23,330/- is treated as bogus purchases and acc....
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....on 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 opinion for the purpose of reopening of completed assessment u/s 143(3) of the Act. Thus, the ab....
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....link between 'tangible material' and formation of reason to believe that income had escaped assessment and consequently, reassessment was unjustified - Held, yes [Para 13] [In favour of assessee]" 2. Principal Commissioner of Income Tax vs Meenakshi Overseas (P.) Ltd. [2017] 82 taxmannc.om 300 (Del.) "Section 68, read with section 147, of the Income-tax Act, 1961 - Cash credit (Accommodation entries) - Assessment year 2004- 05 - Information was received from Director (Investigation) that during year under consideration, assessee had received accommodation entries from a beneficiary - Notice under section 148 was issued and an assessment order was passed by Assessing Officer treating credit received as unexplained income under se....
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....ry operator had admitted that companies from which the assessee had received share application money were only paper companies. Held that during original assessment proceedings, the assessee after initially submitting the details of the companies and the shares subscribed to, further provided confirmations from the said companies. It also submitted copies of the balance sheets of the said companies for the relevant assessment years showing that these amounts were duly reflected therein. The said companies were also assessed to tax. The Assessing Officer was satisfied with the details and information provided by the assessee. On facts, mere statement of an entry operator that the companies in question were 'paper companies', by its....
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....d 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 - Pag....