2024 (11) TMI 1025

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....hallenged the order of CIT(A) on following grounds: "1. That order passed u/s. 250 of the Income Tax Act, 1961 by the Learned Commissioner of Income Tax (Appeals), NFAC, Delhi is against law and facts on the file in as much as he was not justified to arbitrarily uphold the action u/s. 147 taken by the Learned Assessing Officer. 2. That the Learned CIT(A) gravely erred in upholding the addition of Rs. 1,35,40,359/- made on account of alleged inflation of the purchase from M/s. G.S Industries. 3. That the Learned CIT(A) gravely erred in upholding the assessment order despite the facts that the same had been passed by ignoring the principles of natural justice." 3. Shri Ashwani Kumar, appearing on behalf of the assessee narrating facts ....

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....d that, the statement provided to the assessee was not signed by the officer before whom, the said statement was recorded under oath. Such a statement is not admissible and hence, no addition can be made on the basis of such statement. The ld. AR of the assessee further asserted that the addition made by the AO in assessment proceedings is in respect of alleged bogus purchases from M/s. G.S Industries, whereas in the reasons recorded for reopening the AO has alleged that the assessee has obtained accommodation entries of bogus purchase from the concerns of Shri Deepak Sharma namely M/s. Mahinderpal & Sons and M/s. Jai Bhole Traders in the name of Gurdeep Singh and Parminder Singh, respectively. The additions made by the AO do not coincide w....

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....e department vehemently supported the impugned order and prayed for dismissing appeal of the assessee. 6. We have heard the submissions made by rival sides and have examined the orders of the authorities below. The assessee in ground number one of appeal has assailed validity of reopening of assessment. A perusal of reasons for reopening conveyed to the assessee alongwith notice u/s 148A(b) of the Act dated 17/3/2022 show that a search action u/s. 132 of the Act was carried out on Deepak Sharma group of Mandi Gobindgarh. During the course of search statement of Deepak Sharma was recorded. In his statement he allegedly admitted to have engaged in providing bogus purchase entries through 2 bogus concerns i.e. M/s. Mahinderpal & Sons and JaiB....

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.... alleged that Deepak Sharma provided accommodation entries through two bogus concerns M/s. Mahinderpal & Sons & M/s. Jai Bhola Traders and the assessee is beneficiary of accommodation entries from such bogus concerns. For the sake of completeness, the relevant extract of the reasons of reopening are reproduced herein below: "On perusal of the information, it is found that your company has taken bogus purchase entries amounting to Rs. 1,07,92,679/- from entry operator Mr. Deepak Sharma during FY 2017-18. Search u/s 132 of the Income-tax Act, 1961 has been conducted against the Deepak Sharma Group of MandiGobindgarh, in which information emanated from interception of cash, after announcement of election to Legislative Assembly of Punjab. ....