2026 (5) TMI 1489

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....Income Tax Act (in short "the Act"). 2. The brief facts of the case are that the assessee had filed his return of income for AY 2014-15 on 18.11.2014 declaring total income of Rs. 15,25,760/-. The original assessment was completed under Section 143(3) of the Act on 07.06.2016 at total income as per return. Thereafter, the case of the assessee was reopened on the basis of information available in Form 26AS, as per which TCS was collected on purchase of Rs. 14,25,30,399/- whereas the assessee has disclosed purchase of Rs. 11,75,38,168/- only in its account. The reassessment was completed under Section 147 read with Section 144B of the Act on 27.03.2022 at total income of Rs. 2,65,17,991/-, wherein addition of Rs. 2,49,92,231/- was made on ....

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.... recorded by the AO that there was escapement of any income. The Ld. AR contended that the AO was not correct in making addition of Rs. 2,49,92,231/- in respect of unexplained purchase when the case was reopened only to verify the excess claim of TCS on this purchase. 6. Per contra, Shri Abhijit Ld. SR-DR supported the order of the lower authorities. 7. We have carefully considered the rival submissions. In order to adjudicate the grounds taken by the assessee, it will be relevant to reproduce the reason recorded by the AO for reopening the case. The reason of the AO, as reproduced in the assessment order, is found to be as under: "1. The assessee has filed his return of income on 18/11/2014 declaring total income at Rs. 15,2....

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....im of TCS has resulted in under assessment. Therefore, there is escaped assessment for the year under consideration i.e. A. Y 2014-15 within the meaning of section 147 of the IT Act. The assessee completely failed in disclosing fully and truly material facts on above stated fact necessary for its assessment for the year under consideration. 5. It is also noticed from the case records that no further inquiries/queries were conducted on the above issues. 6. In view of the above facts, I have reason to believe that the excess claim of TCS allowed of Rs. 2,49,92,231/- has escaped assessment within the meaning of section 147 of the IT Act on the failure on part of the assessee to disclose fully and truly all material facts nece....