2026 (2) TMI 488

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.... on DRA Group, it was revealed that payments made by M/s. Dineshchandra R. Agrawal Infracon Pvt. Ltd. (DRA Group) to the sub-contractors including appellant are found to be non-genuine and bogus in nature. 2. The Ld. A.O. has erred in assuming jurisdiction u/s. 147 of the Act despite the fact that no income has been escaped in the hands of appellant. 3. The Ld. A. 0. is not justified in disallowing the expenses of Rs. 25,71,047/- which were not claimed by the appellant and Ld. C1T(A) has further erred in confirming the same without considering the fact that the appellant has offered income u/s 44AD of the IT Act, 1961 and not claimed any expenses. The said addition is therefore unwarranted and not sustainable in the eyes o....

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....of the assessee was reflected at the list of bogus sub-contractors. The Assessing Officer has reopened the assessee's case u/s. 147 of the Act after obtaining prior approval and recording reasons. Notice u/s. 148 of the Act was issued on 29-03-2018 from the service of notice i.e. 148 of the Act. The assessee already filed return of income on 26-01-2012 declaring total income of Rs. 2,07,760/-. However, in response to the notice u/s. 148 of the Act, the assessee has filed return of income on 17-05-2018 declaring total income of Rs. 2,07,760/-. Statutory notices were issued and after taking cognizance of the assessee's reply, the Assessing Officer held that the assessee booked bogus purchase expenses for materials through bogus sub-contractor....