9911796707
TMI Blog2024 (12) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... ed bogus purchases and thereby, failed to made full and true disclosure during the assessment proceedings. Therefore, we reject the challenge to the validity of the re-assessment proceedings. Since the re-assessment proceedings were validly initiated no fault could be found in the action of the AO including in the ambit of re-assessment proceedings, the escapement of income on account of the alleged bogus purchases. Estimation of income - Addition of entire purchase price in the hands of the Appellant cannot be sustained. Accordingly, by following the judgment of Mohammad Haji Adam Co. [ 2019 (2) TMI 1632 - BOMBAY HIGH COURT] AO is directed to restrict the addition to the difference, if any, between (a) the gross profits margin offered to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 09/03/2015 under Section 143(3) of the Act at assessed income of INR.3,05.52,120/-. Subsequently the assessment was reviewed by Pr.CIT-12, Mumbai as order under Section 263 of the Act was passed on 24/03/2017 against which appeal was preferred before the Tribunal. Vide order dated 22/11/2017 passed by the Tribunal in ITA No. 3530/MUM/2017 the order passed under Section 263 of the Act was set aside and Assessment Order, dated 09/03/2015, passed under Section 143(3) of the Act was restored. Thereafter, issuing notice under Section 148 of the Act was issued on 31/03/2019 and reassessment proceedings were initiated under Section 147 of the Act which culminated into Assessment Order, dated 31/10/2019 passed under Section 144 r.w.s. 147 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogus purchases of INR. 11,33,022/- and thereby, failed to made full and true disclosure during the assessment proceedings. Therefore, we reject the challenge to the validity of the re-assessment proceedings. Since the re-assessment proceedings were validly initiated no fault could be found in the action of the Assessing Officer including in the ambit of re-assessment proceedings, the escapement of income on account of the alleged bogus purchases of INR.14,33,512/- made by the Appellant from Kangan Jewels Pvt. Ltd. (incorrectly stated as M/s. Kangan Jewels) that had subsequently came to the knowledge of the Assessing Officer during the re-assessment proceedings. 7. As regards, the merits of the addition of INR 25,66,533/- made by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumulatively. Firstly, the order sought to be revised must be erroneous and secondly, it must be prejudicial to the interests of Revenue. Keeping in view the aforesaid legal position, we have to examine the issue at hand. As stated earlier, in the impugned order the assessment order has been revised on three issues. First issue on which the learned PCIT has revised the assessment order under section 263 is on account of alleged non-furnishing of carat-wise details of gold and diamond jewellery. In this context, a perusal of the tax audit report for the relevant previous year filed along with the return of income, a copy of which is placed in the paper book reveals that in the said audit report all details of raw materials and finished produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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