9911796707
TMI Blog2023 (8) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... to the order dated 28/01/2021, passed by the coordinate bench of the Tribunal in M/s. Nakoda Metal Industries vs ITO, M.A. no. 155/Mum./2020 (in ITA no. 4958/Mum./2018, for the assessment year 2009-10), whereby, the earlier order dated 28/11/2019, passed under section 254(1) of the Act was recalled limited to the adjudication of the issue of reopening raised in assessee's appeal. 3. When the present appeal was called for hearing neither anyone appeared on behalf of the assessee nor was any application seeking adjournment filed. From the perusal of the record, we find that after the recall of the aforesaid order passed under section 254(1) of the Act, the present appeal was listed for hearing on various occasions. However, no one has appear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said orders dated 28/11/2019 and 28/01/2021, will not have any bearing on the adjudication of the issue on reopening since after the aforesaid orders only findings of the coordinate bench on merits is sustaining till date. Accordingly, we proceed to decide the issue of reopening, as restored by the coordinate bench vide order dated 28/01/2021, passed under section 254(2) of the Act. 4. The brief facts of the case are that the assessee is a firm and for the year under consideration, filed its return of income on 25/08/2009 declaring a total income of Rs. 4,51,770. The return filed by the assessee was processed under section 143(1) of the Act. Subsequently, on the basis of information received from DGIT (Investigation) Wing, Mumbai about hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lliance Steel Industries 8,69,024 17. Shree Keshar Impex 9,30,280 18. Trichipuram Trading P Ltd. 13,27,924 19. Shree Kehar Impex Metals 19,81,252 20. Rajendra Impex India 31,31,027 Total 2,36,82,462 5. Thus it was noticed that the assessee has taken accommodation entries from twenty parties to the tune of Rs. 2,36,82,462. The Assessing Officer after recording detailed findings on merits, vide order dated 05/03/2015, passed under section 143(3) read with section 147 of the Act, determined the total income of the assessee at Rs. 34,12,080, after making an addition of Rs. 29,60,308, being 12.5% of the total non-genuine purchases of Rs. 2,36,82,482. 6. The learned CIT(A), vide impugned order, dismissed the gro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer should have finally ascertained the fact by legal evidence or conclusion. At the initiation stage, what is required is "reason to believe", but not the established fact of escapement of income. At the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could have formed a requisite belief that income has escaped assessment. In the present case, it is evident from the reasons recorded as reproduced in the statement of facts by the appellant that the AO has received specific and credible information from the DGIT (Inv.); Mumbai that the assessee was involved in making bogus purchases through hawala dealers to the extent of Rs. 2,36,82,462/-. The information prima faci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fectly legal and valid. Resultantly, part of the ground relating to the reopening is 'Dismissed'. With regard to the claim of the appellant that the AO not provided the details and statements on the basis of which he treated the purchases as non-genuine leading to violation of principles of natural justice. In support of the ground, the appellant's AR has not furnished any documentary evidences whether any request was made to the AO seeking such material. In view of the same I am not in a position to sustain the ground and accordingly the ground is treated as dismissed. Accordingly, Ground No, 1 to 3 are treated as 'Dismissed'. 7. We have considered the submissions of learned DR and perused the material available on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of action under section 147(a) (as the provision stood at the relevant time) fulfilment of the two requisite conditions in that regard is essential. At that stage, the final outcome of the proceeding is not relevant. In other words, at the initiation stage, what is required is "reason to believe", but not the established fact of escapement of income. At the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could have formed a requisite belief. Whether the materials would conclusively prove the escapement is not the concern at that stage. This is so because the formation of belief by the Assessing Officer is within the realm of subjective satisfaction ITO v. Selected Dalurband C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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