The assessing officer (AO) reopened the assessment based on the difference between the purchase amount...

The assessing officer (AO) reopened the assessment based on the difference between the purchase amount shown by the assessee and the sales amount shown by the party from whom purchases were made. The Commissioner of Income Tax (Appeals) [CIT(A)] held that the AO's reasons for reopening, "needs to be verified," were outside the purview of section 147. However, the Income Tax Appellate Tribunal (ITAT) disagreed with the CIT(A)'s conclusion. The AO specifically mentioned that Rs. 1,68,24,239/- was required to be taxed in the assessee's hands and that the assessee had suppressed gross profit, leading to an escapement of income. Although the AO mentioned verification in certain parts, the reasons must be read in totality. The ITAT was convinced ..... .....

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