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TMI Blog2020 (12) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... rsuant to reopening the assessment. 3. Briefly stated, the facts of the case are that the assessee filed his original return of income u/s 139(1) of the Act, which was processed u/s 143(1) of the Act. Thereafter, the AO received certain information from DGIT(Inv), Pune about the sales tax hawala racket. On the basis of such information, the AO recorded reasons on 19-06-2013 and issued notice u/s 148 of the Act. During the course of proceedings u/s 147 r.w.s. 143(3) of the Act, the assessee submitted the relevant evidence showing genuineness of the transactions of purchase of Rs. 8,34,600, against which, the AO had recorded reasons as bogus transactions. The AO made the disallowance u/s 40A(3) of the Act for the equal amount. The ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26/03/2013 forwarding CCIT-II, Pune's letter No.8880 dt. 15/03/2013 along with a copy of the Board's F.No.414/B/2013-IT(Inv-I), dt. 15/03/2013 (iii) Endorsement No.79 dt. 30/04/2013 to the CIT-I, Kolhapur's letter No.KOP/CIT-I/ITO(HQ.I)/Hawala/2013-14/186 dt. 30/04/2013 forwarding DGIT(Inv), Pune's letter No.2648 dt. 22/03/2013 (iv) No.KOP/Addl.CIT, R-1&2 / Bog. Hawala Case / 96/2013-14, Dt.02/05/2013 It is found that Shri Dilip Baburao Dalavi, the assessee is a beneficiary of Bogus Hawala Transactions in FY 2008-09 relevant to AY 2009-10. In the letter of the DGIT (Inv), Mumbai, it was mentioned that the Sales Tax Department of Government of Maharashtra had conducted enquiries in the cases of a number of dealers located all across M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Prop. of Aishwarya Enterprises & Aishwarya Hi Tech Bio Remedies. 2008-09 2009-10 8,34,600/- TOTAL -- -- -- Rs. 8,34,600/- 2.1 On verification of the records available in this office, it is found that the assesses Dilip Baburao Dalavi, Prop. of Aishwarya Enterprises & Aishwarya Hi Tech Bio Remedies who is the beneficiary from such bogus Hawala Transaction, is assessed to tax m this Ward. The details regarding the Return of income filed by the assessee for the AY 2009-10 are as under: Sr. No. A.Y. Returned Income Ack. No. Date of filing of Return 1 2009-10 Rs. 6,31,870/- e-filing 02.08.2009 2.2 As per the information received in C.Ds from DGIT (Inv), Mumbai, it is fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... can evidently be said that the assesses under consideration had inflated the purchases, thereby obtaining bogus purchase bills from the said party to the extent of Rs. 8,34,600. In other words, the purchases were inflated by the assesses to claim bogus expenditure which resulted into decrease in profit to the extent of the aforesaid amount. Accordingly, the return and accounts filed by the assesses for the AY 2009-10, there was under assessment of income to the extent of the aforesaid amount of Rs. 8,34,600/- having escaped assessment within the provisions of section 147 of the Income Tax Act, 1961. It is, therefore, a fit case for issue of Notice u/s 148 of the I.T. Act, 1961. 3. I have, therefore, reason to believe that by not disclo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nitiated re-assessment proceedings on the premise that the assessee had recorded bogus purchases to the tune of Rs. 8,33,600. However, the addition was finally made u/s 40A(3) of the Act by impliedly accepting the genuineness of the transactions. That being the position, we are of the considered opinion that the reassessment cannot be held to have been validly initiated. 7. It is further worthwhile to note that the Hon‟ble Bombay High Court in the case of CIT vs. Jet Airways (I) Ltd. (2011) 331 ITR 236 (Bom) has held that the AO cannot proceed with re-assessment if the grounds mentioned in re-assessment are non- existent i.e., if no addition is made on that score. When we examine the factual scenario obtaining in the instant case on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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