9911796707
TMI Blog2017 (10) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... time of completion of assessments. It is the finding of the learned Assessing Officer that assessee could not produce the purchase bills, transport receipts, details of Octroi Payment, details of goods receipt note and details of storage of goods. Assessee is a whole sale trader of paper and iron and it is not a manufacturer. The matter has to be examined thoroughly by the Assessing Officer afresh in the light of the confirmations filed by the dealers supporting the sales made by them to the assessee. Thus, this matter is restored to the file of the Assessing Officer for denovo adjudication in accordance with law after obtaining necessary information from the assessee. The assessee shall provide all the details including the confirmatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t was contended that the reopening of assessments is bad in law. 4. Ld. DR vehemently supported the orders of the authorities below. 5. On a careful consideration of the facts in this case we find that the assessments were reopened after an enquiry conducted u/s. 131 of the Act by the Deputy Director of the Income Tax (Investigation)Unit VII(3), Mumbai and also after obtaining information from the Sales Tax Department that the dealers from whom the assessee purchased materials have provided only accommodation bills without delivery of goods. Based on these informations the assessments were reopened by the Assessing Officer. The Ld.CIT(A) rightly sustained the reopening of assessments placing reliance on the decision of the Hon'bl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sbelieving the affidavits filed by the assessee and stating that the affidavits cannot be taken as evidences for genuineness of the purchases and since the assessee could not produce the parties before him he concluded that the purchases were not genuine. The Assessing Officer further following the decision of the Hon'ble Gujarat High Court in the case of CIT v . Simit P. Seth [356 ITR 451] and the decision in the case of Bholanath Polyfab Pvt. Ltd. [355 ITR 290] estimated the profit element from out of the purchases made from these two dealers at 12.5% and added as income of the assessee in all these Assessment Years. The assessee preferred appeals before the Ld.CIT(A) and the Ld.CIT(A) sustained the addition made by the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re non-genuine. He further submitted that the assessee is only into wholesale paper business and the margin from the business is only 1 to 1.5% and this year margin i.e. 2007-08 is 1.24% as reported in the tax audit report. Therefore, it is submitted that the assessee has not suppressed any profit margin from the business. Learned Counsel for the assessee further referring to Page No.461 of the Paper Book submits that on identical circumstances the Coordinate Bench in assessee s group case where the assessee is a Director deleted the addition made towards bogus purchases. He submitted that facts being identical the same be followed. 9. Ld. DR vehemently supported the orders of the authorities below. Written submissions were also made by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion that the assessee has obtained only bills from these dealers and assessee has made purchases from gray market. The basis for such finding of the Assessing Officer is not based on any evidences on record. On the other hand, the record shows before us that the dealers have issued delivery challans for the goods along with invoices to the goods purchased by the assessee. We also find that in response to notice u/s. 133(6) of the Act by the Assessing Officer the dealers by letters dated 07.03.2015 confirmed that they made sales to the assessee along with the copy of affidavit dated 08.01.2015. They also provided the details like the PAN NO./TAN NO. and the amount of goods sold to the assessee during the Assessment Years 2007-08 t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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