9911796707
TMI Blog2024 (7) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... e purchases made by the assessee which is an item of a trading account duly reflected in the books and also the quantity of sale of purchases have been accepted alongwith gross profit in the original assessment order u/s. 143(3) dated 20/03/2016. Thus, even under the terms of first proviso to Section 147 as was then applicable, no reopening can be done after expiry of four years from the end of the relevant assessment year unless any income chargeable to tax has escaped assessment for the reasons of the failure on the part of the assessee to disclose truly and wholly all material facts necessary for the assessment. Here, there is no such failure on the part of the assessee. Accordingly, in terms of time limit provided in Section 149 and fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. From the information in the public domain, it was found that these entities were not filer and therefore, purchases made from two parties is unexplained. Sr. No. Name of the Party Amount paid (in Rs. ) FY in which payment made 1 Mukesh Steel Corporation 2,55,73,016 2012-13 2 Shah Steel Corporation 10,50,412 2012-13 Total 2,66,23,428 5. The ld. AO has disposed off assessee s objection for reopening without even discussing it in the assessment order and held that assessee had not furnished any substantial material evidence to prove the genuineness of the transaction and accordingly he added the entire purchases of Rs. 2,66,23,428/-. 6. After considering the relevant material on record, we find that already assessment was completed u/s. 143 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ading account duly reflected in the books and also the quantity of sale of purchases have been accepted alongwith gross profit in the original assessment order u/s. 143(3) dated 20/03/2016. Thus, even under the terms of first proviso to Section 147 as was then applicable, no reopening can be done after expiry of four years from the end of the relevant assessment year unless any income chargeable to tax has escaped assessment for the reasons of the failure on the part of the assessee to disclose truly and wholly all material facts necessary for the assessment. Here, there is no such failure on the part of the assessee. Accordingly, in terms of time limit provided in Section 149 and first proviso to Section 147, the reopening itself is bad in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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