TaxTMI 
TaxTMI 
2025 (12) TMI 585
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....erred in reopening the assessment u/s 147 and making an addition of Rs. 43,17,081/- on account of alleged bogus purchases from M/s G.S. Industries, Mandi Gobindgarh. 2. That the confirmation of addition by the Ld. CIT(A) in respect of bogus purchases amounting to Rs. 43,17,081/- is against the facts and circumstances of the case. 3. That the reopening of the case u/s 148 merely on the basis of statement of third party 1.e. supplier is not justified, since there is no other material on record. 4. That the Ld. Assessing Officer/CIT(A) has failed to appreciate that no evidencery value can be attached to the statement recorded during search/post search/survey for the purposes of reopening of the case u/s 148. ....
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....7,081/- from one party namely M/s. G.S. Industries Prop. Deepak Sharma as per information gathered after search action conducted u/s 132 at 'Deepak Sharma Group of Mandi Gobindgarh', wherein as per the information provided to the assessee, vide order passed u/s 148A(d) dated 03.03.2023. The summary of search result revels that, the assessee has allegedly made bogus purchases from Sh. Deepak Sharma, and no such information have been provided as evident from copy of reasons to believe. The AO relied upon such information without providing and incriminating evidence in the shape of statement, document and some other receipt or documents. The AO made the addition of Rs. 47,17,081/-, without considering the documentary evidences filed by the ass....
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....Purchases' and relating to 'Delivery of goods' was well explained by the assessee and no adverse view have been taken in the assessment order for A.Y. 2018-19 as per copy of assessment order for A.Y 2018-19 passed vide order dated 17.03.2023. 4. It is submitted that, the reopening proceeding for A.Y. 2019-20 i.e. the year under consideration, the case of the assessee was selected for the same reasons as per Asst. Year 2018-19 information provided to assessee vide order passed u/s 148A(d) dated 03.03.2023 i.e. reason for issuance of notice u/s 148 of the Income Tax Act as duly mentioned in the order of 148A(d) The reason mentioned in the reason to believe are as under:- i) As per page 2 relevant para No. 2 of the 148A(d) or....
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....laced on judgements on the issue that reopening based on vague reason to believe is not admissible for reopening of the case of the any assessee as per following case laws of different High Court and Hon'ble Tribunals as under:- * J.K. Bullions (P.) Ltd. vs. Deputy Commissioner of Income-tax [2024] 169 taxmann.com 590 (Gujarat) [29-10-2024] Section 69A, read with section 148, of the Income-tax Act, 1961 - Unexplained moneys (Reopening of assessment) - Assessment years 2014-15 to 2016-17 - Assessee was engaged in business of trading in gold and silver bullion - Assessing Officer issued reopening notice on ground that assessee had made cash deposits and made cash sales without keeping proper documentary evidence and identity of custo....
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.... this issue, the Ld. CIT(A) has given his findings in the appellate order as under: - 6.2 I have perused the assessment order, ground of appeal submission filed by the appellant carefully. I find from the assessment order that the case reopened u/s 147 on the basis of information received from DCIT, Central Circle, Patiala according to which it was revealed during search operation u/s 132 in the case of Deepak Sharma Group of Mandi that the said group was involved in issuing bogus purchase bills without actual delivery of goods to the beneficiaries and the appellant was one of such beneficiary who had obtained purchase bills of Rs. 43,17,081/-. During the course of assessment proceedings, the appellant was requested to prove the ge....
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....n his possession did not have any documentary evidence for such alleged bogus purchases except the statement given by one Mr. Deepak Sharma recorded during operation u/s 132 of the Act in the case of Deepak Sharma Group of M/s. G.S Industries, Mandi Gobindgarh. It was revealed that during the search operation the group was informed about issuance of bogus purchases, bills without actually delivery of goods to the beneficiaries. The Assessing Officer found that the Assessee was also one of such beneficiaries and accordingly a notice was issued to the Assessee u/s 147 of the Act. Even the Ld. CIT(A) accepted that all the transactions recorded by the Assessee are reflected in its GST return. He has also noted that payments were made through ba....