9911796707
TMI Blog2024 (11) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment proceedings. Further, third party statement recorded subsequent to the reasons recorded, cannot form basis of Assessing Officer s reasons to believe to reopen the assessment. In the instant case, there is no coherence in the reasons recorded for reopening and the addition made in the assessment order. There is utter nonapplication of mind by the Assessing Officer while recording reasons for reopening. In facts of the case, we have no hesitation in holding that reopening of assessment lacks Assessing Officer s, reasons to believe for reopening of assessment. Reassessment proceedings are held invalid, hence, quashed. The assessee succeeds on ground no.1 of appeal. - Shri Vikas Awasthy, Judicial Member And Shri Naveen Chandra, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent were also supplied to the assessee. A copy of the notice and reasons recorded for reopening are at pages 21 and 22 of the paper book. The assessee vide letter dated 22.03.2022 gave reply to the notice stating that the assessee has not made any purchases from the parties mentioned in the reasons for reopening during the year under consideration. The AO vide order dated 30.03.2022 passed u/s. 148A(d) of the Act rejected the objections raised by the assessee against reopening. The AO proceeded with the reassessment proceedings and vide assessment order dated 30.03.2023 passed u/s. 147 r.w.s 144B of the Act made addition of Rs. 1,35,40,359/- on account of alleged bogus purchases made from M/s. G.S Industries. The AO has made addition, based ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ok. The payments have been made against said invoices through banking channels and bank statement of the assessee is at pages 63 to 75 of the paper book. The sales made by the assessee have been accepted by the AO, the AO has also accepted books of accounts of assessee. The assessee had furnished all these documents before the AO. However, without examining the documents furnished by the assessee, the AO has passed the assessment order. The ld. AR pointed that the CIT(A) in the impugned order has raised doubt over the transaction of purchases on the ground that the assessee failed to provide the address and where abouts of G.S Industries and no details evidencing transportation of scrap to the assessee was available. The said observations o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d concerns during the period relevant to the assessment year under appeal. After reply of assessee, a fresh statement of Deepak Sharma was recorded on 14/7/2022, wherein he stated that M/s. G.S. Industries is a paper concern. The Assessing Officer on the basis of subsequent statement of Deepak Sharma made addition of Rs. 1,35,40,359/- in the hands of assessee on account of bogus purchases from G.S. Industries. 7. Before proceeding further, it would be imperative to refer to some dates in the sequence of events: Date Event 17/3/2022 Notice under section 148 reasons recorded for reopening. 22/3/2022 Reply of the assessee to the Notice u/s. 148 the reasons for reopening 14/7/2022 Statement of Deepak Sharma recorded u/s. 131(1A) where he referr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly, such non genuine bogus credit entries in the books of beneficiary remain unexplained. No plausible explanation is available on records, which explains reason of credit entries taken by your company from dummy/ bogus company. Hence, what appears prima facie is the re-routing of unaccounted income. In assessment order there is no allegation that the assessee has taken any bogus accommodation entries from the bogus concerns of Deepak Sharma named in the reasons for reopening the assessment. It is a well settled law that if no addition is made on the basis of reasons recorded for reopening, no other addition can be made. The reasons for reopening should coincide with the addition made in the reassessment proceedings. 8. Further, third par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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