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TMI Blog2019 (8) TMI 1724X X X X Extracts X X X X X X X X Extracts X X X X ..... e reopening is done on the basis of same materials in respect of the same parties, which were examined by the AO by calling for specific details from the assessee. In our opinion the case of assessee was reopened on the change of opinion only as all the parties were verified by the AO during the course of original assessment proceedings. This is a mere change of opinion by the AO, which is not permissible under the Act. The case of assessee is squarely covered by the decision of CIT V. Kelvinator of India Ltd.[ 2010 (1) TMI 11 - SUPREME COURT] - Appeal of assessee is allowed. - ITA No. 2327/Mum/2017 - - - Dated:- 19-8-2019 - SHRI MAHAVIR SINGH AND SHRI RAJESH KUMAR, JJ. Appellant by : Shri C.V. Jain, AR Respondent by : Ms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the postal authorities. Finally, AO came to the conclusion that the said purchases were Hawala purchases, and the assessee was indulging in such activities to suppress the true profits and to reduce the tax liability. The AO thought it reasonable to make addition on percentage basis by following the decision of Hon'ble Gujarat High Court in the case of CIT Vs. Simit P. Sheth [356 ITR 451] (Guj). The AO estimated the Profit on the said purchases @ 12.50% thereby making an addition of ₹ 1,43,02,913/- by making assessment u/s.143(3) r.w.s.147 of the Act, vide order dt.18-03-2015. 2.2. In the original assessment proceedings, AO has basically raised a query for furnishing the details of sale and purchases above ₹ 50,000/- vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note that during the original assessment proceedings, the AO specifically raised a query vide letter dt.08-09-2011 in para 2, directing the assessee to furnish the sales and purchases, which was replied by assessee vide letter dt.18-10-2011, giving party-wise sales and purchases. We find that all the Hawala parties qua which the reopening proceedings were resorted to u/s.147 r.w.s.148 of the Act were originally furnished before the AO as is apparent from pages 51 52 of the Paper Book and thus, the reopening is done on the basis of same materials in respect of the same parties, which were examined by the AO by calling for specific details from the assessee. In our opinion the case of assessee was reopened on the change of opinion only as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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