TaxTMI 
TaxTMI 
2025 (9) TMI 1115
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....missioner of Income Tax, Karnal, (in short 'the AO) under section 147/143(3) of the Income Tax Act, 1961 (in short, 'the Act') in respect of Assessment Year-2010-11. 2. The grounds of appeal raised by the assessee are as under:- "1. Because the action for initiation, continuation and conclusion of assessment proceedings u/s 147/143(3) at total taxable income of Rs 65,79,460/- in which Rs. 62,85,016/- is being challenged on facts and law. 2. Because the action for initiation of re-assessment proceedings is unreasonable since recording of reasons, the basis of approval for initiation of the proceedings lacks judicial application of mind as being influenced by the information from Investigation Wing which ipso facto does n....
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....dings is unreasonable since while recording reasons, the basis of approval for initiation of the proceedings lacks judicial application of mind as being influenced by the information from Investigation Wing which ipso facto does not result in concealed income. Further reasons recorded are vague, lacking tangible material/ reasonable cause and justification" ii. Because the action for initiation of re-assessment proceedings is unreasonable since the approval granted by Pr. CIT was a mechanical approval hand hence initiation of proceedings u/s 147 of the Act on this ground is invalid."1. That on facts and in law the impugned order dated 21st February 2024 passed by the Commissioner of Income Tax (Appeals) (hereinafter referred to as ....
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....nsactions with these entities as loans/advances. The AO also observed that payment made to M/s Kamna Enterprises was immediately followed by cash deposits of same amount. The assessee had failed to produce books of account along with bills/vouchers. The AO thus added Rs. 62,85,016/- (Rs. 51,20,000/- + 11,65,016/-) transferred to the bank accounts of the said entities as unexplained transaction as being made out of books, to the total income of the assessee for the year and he assessed total income to Rs. 65,79,460/-. 6. Being aggrieved with the assessment order, the assessee went in appeal before the Ld. CIT(A) who upheld the action of the AO and dismissed the appeal of the assessee by observing as under:- In these grounds, the ....
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....s was engaged in bogus billings and no actual sales and purchases of goods were made by the said concern. He explained the modus operandi as being such that the parties in whose favour the bogus bills were issued transferred the amount equal to the bogus bill amount through NEFT/RTGS in the bank account of M/s Kamna Overseas. Thereafter, Shri Rajesh Mittal or Shri Bhagwan Jain made cash withdrawal equal to the bogus bill amount and after retaining the commission amount (0.10% of bogus bill amount) returned the balance cash to the respective parties. He stated that no goods were ever sold and delivered to the parties from whom payments were received through RTGS etc. The Investigation Wing had reported that the appellant had, during the year....
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....etc, not mentioned. The appellant provided no details for the same when asked to. No details regarding transport bilties and weighment slips for sale of rice shown were also produced by the appellant despite being asked to. The AO also found no godowns etc. listed in the fixed assets chart in the Balance Sheet. These and various other relevant details sought by the AO from the appellant to establish its claim were not provided by it. As for the billing transactions of Rs. 51,20,000/- with M/s Kamna Overseas, as mentioned earlier, the explanation of the appellant that it had repaid loan to the said entity was not found correct from the facts on record as discussed. It was clear that the appellant had taken only accommodation entries from the....
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....tions proceedings. The Ld. AR contended that since the AO has made the addition of Rs. 62,85,016/- without having provided either the opportunity or information, the proceedings under section 147 were initiated in violation of the settled principle of law. The AR argued that the decision of the Ld. CIT(A) in confirming the amount of Rs 62,85,016/- by treating as unexplained transaction of purchases without appreciating the facts and merits of the case that mere financial transactions with the genuine entities cannot be treated as bogus purchase transactions based on presumption and assumptions. He argued that the assessee has not made any purchase from either of the alleged above concerns and that the assessee had received a loan of Rs. 11,....