2025 (12) TMI 1043

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....peal before it against the order dated 01.12.2023 u/s 154 r.w.s. 254 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by the ACIT/DCIT/ACIT, Central Circle, Ghaziabad for Assessment Year 2012-13. 2. Heard and perused the records the Ld. Counsel has primarily question the assumption of jurisdiction alleging that the addition made u/s 69 of the Act is not sustainable for the reason that without rejecting the books of the assessee the bogus purchases for which payment were made from the books addition u/s 69 could not have been made. Reliance was placed by Ld. Counsel on the decision of Hon'ble Allahabad High Court in Sarika Jain and other decisions supported the case are as under: i. PCIT (Central)-2 Vs. P....

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.... invoking a wrong section but has again asserted that addition was on account of bogus purchases of Rs. 4,55,50,000/- u/s 69 of the Act. 6. Then on merits of this issue, we find on perusal of the proforma for obtaining approval u/s 151 of the Act shows that approval was granted for reopening by reliance the reasons for believe as per the annexure attached and annexure attached containing the reasons to believe gives details of the information received and mentions that assessee has given an amount of Rs. 4,45,50,000/- through RTGS from Yes Bank during the Financial Year 2011-12, M/s Bhawani Enterprises proprietorship Virender Singh which establishes that the assessee has been made bogus purchases/expenses. 7. At the time of recording ....

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....ise to revenue from operations has not been doubted. The impugned order of ld. CIT(A) shows that primarily the investigation wing report of M/s Bhiwani Enterprises, bank account transactions and failure of the proprietor to respond became basis to consider the purchases to be bogus. Nothing independently was examined and found from books of account of the assessee to allege that purchases were bogus. 9. Now when the ld. AO specifically invokes unexplained deemed income provision forming part of Section 68 to Section 69C of the Act then for every provision so invoked casts a different sort of onus on the assessee and for the purpose of Section 69 of the Act what is material is that explanation sought rests on the fact that in the precedin....