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TMI Blog2019 (4) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion that the issue of profitability which appears to be gone into, requires re-examination not because of a second opinion or review but because of the survey conducted subsequently. The materials clearly showed that the sales declared were suspect, to say the least. The Court is of the opinion that the relief claimed in these petitions, i.e. quashing of the impugned reassessment notice cannot be granted. The writ petitions are accordingly dismissed. - W.P.(C) 11736/2018, C.M. APPL.45395-45396/2018, W.P.(C) 12546/2018, C.M. APPL.48699-48700/2018 - - - Dated:- 9-4-2019 - MR. JUSTICE S. RAVINDRA BHAT And MR. JUSTICE PRATEEK JALAN Sh. Rajesh Mahna, Sh. Manu. K. Giri And Sh. Ramanand Roy, Advocates, for petitioner. Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 30.73 2011-12 501 29.71 During the course of survey operation, various incriminating documents were found and impounded which clearly shows that the said company has been used to raised bogus purchases in CMR. Annexure-1 containing Printed pages 2851-2900 i.e. Pages 1 to 194 consists bill book of Khushkera Mini Truck Operator Union, Honda Chowk near Sunbeem Company, Industrial Area, Khushkhera, Tapukara, Distt. Alwar (Raj.) was found at the entry gate of premises situated at 182, Sector-5, Manesar (Gurgaon). XXXXXX XXXXXX XXXXXX 2.6 Contemporaneously, statement of Sh. V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... material facts as noted above in the reasons for reopening were embedded in such a manner that material evidence could not be verified by the AO from the return of income and could have been discovered with due diligence, accordingly attracting provisions of Explanation 1 of section 147 of the Act. 6. Basis of forming reason to believe and details of escapement of income As mentioned in para 5 above the assessee company has made bogus sales amounting to ₹ 5,97,36,46,243 in the A.Y 2011-12. Therefore I have reason to believe that the income of ₹ 8,62,92,556 (1.5% of sales turnover of ₹ 5,97,36,46,243 less profit already declared ₹ 33,12,137) escaped assessment as defined by section 147 of the Act for A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner. 4. It is evident from the above discussion that the trigger for the reassessment notice in this case was a survey conducted in the premises of CMR. The AO became aware of this survey report when the investigation wing through a letter dated 19.03.2018 shared a copy of it with him. Besides extracting the turnover for three years and the disproportionately low profits declared, the reassessment notice also alludes to several incriminating documents pointing to suspect nature of sale and which the petitioner had declared. 5. The reassessment notices talk about the statements of two employees and officials of CMR who were completely unaware and disclosed no knowledge about the invoices raised upon the transporter, or even i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osure of all material facts necessary for his assessment during the concluded assessment proceedings, any part of his income, profit or gains chargeable to income tax has escaped assessment. He may start reassessment proceedings either because some fresh facts come to light which were not previously disclosed or some information with regard to the facts previously disclosed comes into his possession which tends to expose the untruthfulness of those facts. In such situations, it is not a case of mere change of opinion or the drawing of a different inference from the same facts as were earlier available but acting on fresh information. Since, the belief is that of the Income-tax Officer, the sufficiency of reasons for forming the belief, is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessments for both years, and the relative records were shared with the AO only on 19.03.2018. 7. Given the time constraint after analysing the report of the survey, including the statement recorded during the survey, the AO was of the opinion that the issue of profitability which appears to be gone into, requires re-examination not because of a second opinion or review but because of the survey conducted subsequently. The materials clearly showed that the sales declared were suspect, to say the least. For the above reasons, the Court is of the opinion that the relief claimed in these petitions, i.e. quashing of the impugned reassessment notice cannot be granted. The writ petitions are accordingly dismissed. - - TaxTMI - TMITax - In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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