2026 (5) TMI 1629

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....legal issues as well as on merits, however, at the time of hearing, ld. Counsel appearing for the assessee confined his arguments to ground no. 1, which is on merits. In view of the aforesaid, we proceed to decide ground no. 1 and the rest of the grounds are kept open. 3. So far as ground no. 1 is concerned, briefly the facts are, the assessee, a resident individual (since deceased) is represented through his legal heir. The assessee was engaged in the business of trading in cut and rough diamonds. For the assessment year under dispute, the assessee had filed his return of income on 26.09.2012, declaring income of Rs. 8,98,400/-. The return of income filed by the assessee was processed u/s. 143(1) of the Act. The A.O. found that as per i....

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....come. Having held so, he concluded that 100% of the value of the transaction is to be treated as a profit of the assessee. Accordingly, he added back the amount of Rs. 53,74,150/-, representing the alleged non-genuine purchases. 5. In appeal, ld. first appellate authority confirmed the addition. 6. We have heard the parties and perused the materials on record. Undisputedly, based on materials found in a third-party search and seizure operation, the A.O. received information from the Investigation Wing that the assessee, allegedly, was involved in availing accommodation entries by way of bogus purchases. Thus, based on such information, the A.O. reopened the assessment u/s. 147 of the Act. However, in course of assessment proceedings, ....