SHRI BHARAT C JASANI,MUMBAI vs. INCOME TAX OFFICER 27(1)(2), MUMBAI

O R D E R

PER AMARJIT SINGH, JM:

1. On the facts and circumstances of case and law the Ld CIT(A) erred in confirming the assessment order under section 143 sub section 3 r w s 147 of income tax Act which is passed against the principal of natural justice. A.Y.2010-11

2. On the facts and circumstances of the case and in law the Ld CIT (A) failed to consider that reassessment proceeding cannot be initiated. a) No reassessment can be made just to make an enquiry or verification. b) Reassessment proceeding cannot be initiate merely on the information received from investigation wing. c) Reassessment proceeding cannot be initiated when the Ld. CIT (A) have reason to suspect and not reason to believe.

3. The Ld CIT(A) erred in confirming and treating Rs. 13,91,925/- being 12 point 5 percent of the total purchases of Rs.1,11,35,400/- as bogus non-genuine expenditure and thereby erred in adding the same to the total income of the assessee.

4. The Ld. CIT (A) erred in confirming the charging of interest under section 234A, 234B 234C and 234D of the Income Tax Act 1961.

5. The Ld. CIT (A) erred in confirming the initiation of the penalty proceeding under section 271(1)(c) of the Income Tax Act 1961.

6. The Assessee craves leave to add further grounds or to amend or alter the existing grounds of appeal on or before the date of hearing.”

3. The brief facts of the case are that the assessee filed his return of income on 04.10.2010 declaring total income to the tune of Rs.8,50,210/- for the A.Y. 2010-11. The case of the assessee was reopened u/s 148 of the Act dated 30.01.2015. The notice u/s 147/148 of the Act was issued and served upon the assessee. The reasons for reopening were that the assessee has taken the accommodation entries of bogus purchase in sum of Rs.1,11,35,400/- from the following eleven parties.

Name of the Party F.Y. Amount Ankit Enterprises 2009-10 387791 AP Enterprise 2009-10 1602545 Vidhi And Vrushti Trade Pvt. Ltd. 2009-10 1748982 A.Y.2010-11 Darshana Corporation 2009-10 209352 Deepak sales Corporation 2009-10 265592 Amit Trading Co. 2009-10 357853 Sidhi Enterprise 2009-10 613477 Arihant Enterprise 2009-10 779453 Neem Enterprises 2009-10 959080 Kavish International 2009-10 2105570 Ridhi Associates 2009-10 2105705 Total 1,11,35,400 4. After the reply of the assessee, the AO restricted the addition to the extent of 12.5% of the bogus purchase in sum of Rs.1,11,35,400/- which comes to the tune of Rs.13,91,925/-. The total income of the assessee was assessed to the tune of Rs.22,42,135/-. Feeling aggrieved, the assessee filed an appeal before the CIT(A) who confirmed the addition raised by the AO, therefore, the assessee has filed the present appeal before us.