TaxTMI 
TaxTMI 
2018 (10) TMI 2028
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.... For the assessment year under dispute the assessee had filed its return of income on 29.09.2011 declaring total income of `.13,76,240/-. The return of income filed by the assessee was initially processed under section 143(1) of the Act. Subsequently, on the basis of information received from DGIT (Investigation), Mumbai and the Sales Tax Department, Government of Maharashtra that the assessee is one of the beneficiary of the accommodation entries provided by way of bogus purchase bill issued by M/s.Daksha Enterprises, an entity identified as a hawala operator by the Sales Tax Department, reopened the assessment under section 147 of the Act. During the re-assessment proceeding the Assessing Officer called upon the assessee to prove the genu....
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....n of `.5,13,630/-. After completion of assessment as aforesaid, learned PCIT in exercise of power conferred under section 263 of the Act called for and examined the assessment records of the assessee. After examining the assessment record learned PCIT was of the view that the assessment order passed by the Assessing Officer is erroneous and prejudicial to the interest of revenue, as, while restricting the addition to 10% of the bogus purchases the Assessing Officer has not considered the decision of the Hon'ble Supreme Court in case of N.K.Protein Ltd. V/s. DCIT [2017] 84 taxman.com 195. Accordingly, he set aside the assessment order passed with a direction to the Assessing Officer to pass a fresh order keeping in view the observations ....
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....e Hon'ble apex court in case of N.K. Protein (supra) was delivered after the assessment order was passed by the Assessing Officer, however, he justified the exercise of power under section. 263 of the Act by the PCIT 5. We have considered rival submissions and perused material on record. Factual matrix of the case reveals that on the basis of specific information received indicating that the purchases made by the assessee are bogus, the Assessing Officer reopened the assessment under section 147 of the Act. It is also evident, in course of assessment proceeding the Assessing Officer has conducted necessary inquiry by calling for various information from the assessee as well as independently to ascertain the genuineness of the purchases....
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....on of assessment on 02.03.2016. Therefore, there is no occasion on the part of the Assessing Officer to consider the said decision. That being the case, the exercise of power under section 263 of the Act for non-consideration of the aforesaid decision of the hon'ble apex court is wholly misconceived. In any case of the matter, the addition to be made on the basis of bogus purchase is a purely factual issue and varies from case to case depending upon the facts of each case. In case of N.K. Protein (supra) the facts involved clearly reveal that there was a search and seizure action carried out in case of N.K. Protein during which various incriminating material including blank cheque books in the name of different entities were found which con....