2022 (10) TMI 1299

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....resident individual, is engaged in the business of trading in dye blocks. For the assessment year under dispute, the assessee filed its return of income in regular course which was processed under section 143(1) of Act. Subsequently, the Assessing Officer received information from the Investigation Wing that certain purchases made by the assessee during the year under consideration are non-genuine and in the nature of accommodation entry. Based on such information, the Assessing Officer reopened the assessment under section 147 of the Act. In course of assessment proceeding, the Assessing Officer called upon the assessee to prove the genuineness of purchases worth of Rs.1,74,97,140/-, failing which, the amount would be treated as bogus purc....

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....from a third party. Thus, he submitted, the reopening of assessment is invalid. 4. As regards merits, learned counsel for the assessee submitted, in course of assessment proceeding, the assessee had furnished quantitative tally of purchase and sales and nothing adverse was found by the Assessing Officer. He submitted, the Assessing Officer has not even doubted the sales effected by the assessee. Thus, he submitted, the addition made on purely adhoc basis is unsustainable. 5. Learned Departmental Representative strongly relied upon the observations of learned Assessing Officer and learned Commissioner (Appeals). 6. I have considered rival submissions and perused the materials on record. As regards the validity of reopening of assess....

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....ion, the reopening of assessment under section 147 of the Act is valid. 7. As regards the merits of the issue, on a perusal of the impugned assessment order, it is observed that the Assessing Officer has merely proceeded on the basis of information received from the Investigation Wing. He has not conducted any inquiry independently and has not brought any sort of evidence on record to corroborate the finding of the Investigation Wing. Even, there is nothing in assessment order to suggest that the Assessing Officer has conducted preliminary inquiry by issuing notice under section 133(6) of the Act to the selling party to ascertain the genuineness of the purchases. The Assessing Officer has not expressed any doubt, whatsoever, regarding th....