2026 (1) TMI 358

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....fter referred to as 'the ld. AO') u/s 147 r.w.s. 144B of the Act for Assessment Year 2018-19. 2. The brief facts of the case are that the assessee filed the return of income on 16.02.2019 declaring the total income at Rs. 12,72,933/-. As per specific information, the assessee had carried out transactions during the Financial Year 2017-18 relevant to AY 2018-19 and had taken bogus/non-genuine accommodation entries in the form of bogus purchase and sale/income-tax credit from dummy companies like RCI Industries & Technologies Limited amounting to Rs. 68,56,872/-. The case was reopened u/s 147 of the Act. Notice u/s 148 of the Act dated 30.03.2022 with prior approval of the competent authority was issued. In response to the notice u/s 148 o....

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....Reliance was placed on the decision in the case of Narender Kumar Gupta (2015) 55 taxmann.com 371 (P&H) wherein the Hon'ble Punjab & Haryana High Court held that the Tribunal cannot delete addition u/s 69C and estimate the income. Where the Assessing Officer made addition to assessee's income u/s 69C in respect of bogus purchases, in view of failure of assessee to even prove existence of suppliers, the Tribunal could not delete impugned addition and direct Assessing Officer to assess income at net profit rate of 6 percent. The reliance was also placed on the following decisions: (i) N.K. Industries Ltd. (2016) 72 taxmann.com 289 (Guj)/(2017) 292 CTR 354 (Guj); (ii) Choksi Vachharaj Makanji & Co. (2016) 76 taxmann.com 17 (G....

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.... of the Assessee reported in the financial statements relating to goods found to have been part of unexplained purchases The assessee has provided details of sales and purchases which on examination is found to be undertaken through banking channels (vi) Through the coordinated understanding of the factual matrix of the case it is found that the assessee was engaged in sale of goods the backup purchase of which was found to be unsubstantiated and unreliable. The notable deficiency pointed out by the AO is enough to construe that the assessee was engaged in the business of trading of cables where purchase was infected with the shady coverage of paper bills purchased from suspect sources with a view to suppress the profit derived fro....