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TMI Blog2021 (7) TMI 292X X X X Extracts X X X X X X X X Extracts X X X X ..... ginal assessment proceedings. He has not made specific enquiry in respect of the purchases. It is also a fact on record, after completion of original assessments for assessment year 2009-10, AO received information from the Investigation Wing of the department indicating that certain purchases claimed to have been made by the assessee are non genuine as the concerned selling dealers have indulged in providing accommodation bills - AO had tangible material available with him to form a belief that income chargeable to tax has escaped assessment - contention of the assessee that the assessing officer has reopened the assessment on a mere change of opinion without proper application of mind is contrary to facts on record; hence, unacceptable. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised in these appeals are more or less identical. In grounds 1 and 2 assessee has challenged the validity of reopening of assessment under section 147 of the Income Tax Act, 1961. Whereas, in grounds 3 and 4, assessees have challenged the merits of the disallowance made because of alleged non genuine purchases. 3. Briefly the facts are, both the assessees are stated to be trading in iron steel as well as allied products. It is stated, the assessees purchase the goods from local wholesalers or on government auction and resale them to retailers or some wholesalers in the local market. For the impugned assessment years, the assessees filed their returns of income in regular course. In assessment year 2009- 10 assessments were originall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and in the process have suppressed true profit. Thus, instead of disallowing the entire purchases, the assessing officer disallowed 12.5%, being the profit element embedded in the alleged non genuine purchases in respect of both the assessees for the assessment years under dispute. The assessees contested the aforesaid disallowances before learned Commissioner (Appeals). After considering the submissions of the assessees, learned Commissioner (Appeals) did not entertain the grounds raised by the assessee challenging the validity of reopening of assessment. As regards the merits of the disallowance made, learned Commissioner (Appeals) granted partial relief to the assessees by directing the assessing officer to work out the additions afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made, let it be restricted to 2% on the alleged non genuine purchases. 6. The learned departmental representative submitted, after completion of original assessment in assessment year 2009-10, the assessing officer received specific information from the Investigation Wing indicating that certain purchases made by the assessee are non genuine. Thus, based on such fresh and tangible information and material available on record, the assessing officer has reopened the assessments under section 147 of the Act. He submitted, in assessment year 2010-11, the returns of income filed by the assessees were simply processed under section 143(1) and no scrutiny has taken place. Therefore, when no opinion was formed, there cannot be any change of opi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndulged in providing accommodation bills. Thus, it is evident, the assessing officer had tangible material available with him to form a belief that income chargeable to tax has escaped assessment. Thus, the contention of the assessee that the assessing officer has reopened the assessment on a mere change of opinion without proper application of mind is contrary to facts on record; hence, unacceptable. 9. Insofar as assessment year 2010-11 is concerned, it is an admitted factual position that the returns of income filed by both the assessees were only processed under section 143(1) of the Act. Thus, there was no occasion for examining the purchases made by the assessees. Considering the aforesaid factual position, I am unable to accept as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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