2019 (1) TMI 2076

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Rs. 10,80,974/- without any clinching evidence on record. iii) The Ld. CIT (A) erred in law and facts in sustaining 12.5% of the purchases on adhoc basis when stock tally was produced before him and books of accounts have not been rejected. iv) The Ld. CIT (A) erred in law and facts in sustaining the action of ITO in not responding to the objections on reopening of assessment, submitted on behalf of assessee. v) The Ld. CIT (A) erred in law and facts in sustaining the allegation made under a wrong impression by the ITO that the assessee claimed these purchases to reduce the GP. The appellant craves to add, amend, alter or vary from the above grounds of appeal at or before the time of hearing. It is therefore, prayed that the addit....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at the assessee has actually made bogus purchases of the party M/s Maa Durga Trading Co. Merely on the ground that information received from other party cannot be the basis of reaching a conclusion that there is no escapement of income and it was mentioned in the said letter that if there is any additional material available on record in support of the belief, it should be provided before advancing proceedings u/s. 147 of the Act, which was not dealt with by the AO neither by a separate order nor in the final assessment order dated 21.3.2016, which is against the law laid down by the Hon'ble Supreme Court of India in the case of GKN Drive Shafts India Ltd. vs. ITO (2003) 259 ITR 19. Hence, he requested to quash the reassessment order. 4. O....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....esh, after giving adequate opportunity of being heard to the assessee. My aforesaid view is fortified by the decision of the Hon'ble Supreme Court of India in the case of GKN Drive Shafts India Ltd. vs. ITO (2003) 259 ITR 19 wherein the Hon'ble Supreme Court of India has passed the following order:- "Heard learned counsel for the parties. Leave is granted. By the order under challenge, a Division Bench of the High Court at Delhi (see [2002] 257 ITR 702) dismissed the writ petition filed by the appellant challenging the validity of notices issued under sections 148 and 143(2) of the Income-tax Act, 1961. The High Court took the view that the appellant could have taken all the objections in its reply to the notices and that, at that s....