Ajay Narayan Bhoir Vs ACIT (ITAT Mumbai)
In case of return of income processed under section 143(1), the only condition to be satisfied for reopening is that taxable income has escaped assessment and the assessee’s plea that no fresh material was there before the AO warranting re-opening, was not relevant.
FULL TEXT OF THE ITAT JUDGMENT
This is an appeal filed by the assessee. The relevant assessment year is 2011-12. The appeal is directed against the order of the Commissioner of Income Tax (Appeals)-2, Thane [in short ‘CIT(A)’] and arises out of the assessment completed u/s 143 (3) r.w.s. 147 of the Income Tax Act 1961, (the ‘Act’).
2. Broadly stated, the assessee/appellant has raised two grounds of appeal. The 1st one is against the order of the Ld. CIT(A) confirming the reopening made by the Assessing Officer (AO) u/s 147 of the Act. The 2nd ground is against the order of the CIT(A) estimating profit @ 25% out of lleged hawala purchases of Rs.25,74,568/- which comes to Rs.6,43,642/-.
3. We begin with the 1st ground of appeal. The facts of the case are that the assessee filed his return of income for the AY 2011-12 on 29.09.2011 disclosing a total income of Rs.69,49,784/-. The same was processed by the AO u/s 143(1) of the Act. Subsequently, the Assessing Officer (AO) received information from the Sales Tax Department, Government of Maharashtra that certain accommodation-entry providers had given entries and that no goods as mentioned in the purchase bills issued by them were in fact delivered to the beneficiaries. In the case of the assessee, the entry providers were as under:
