Dove Consultants Pvt. Ltd v. DCIT ( Delhi ) ( Trib) . www.itatonline .org

S. 147 : Reassessment – Bogus purchases – Information must be reliable and there must be some evidence to believe that purchases are bogus- Reassessment was quashed . [ S.148 ]

Allowing the appeal of the assessee the Tribunal held that the sales / consumption of the material by the assessee  was  not been doubted by the Assessing Officer. There is no mention of any evidence available before the AO to show that the transaction was a bogus transaction. The assessing officer merely on the basis of suspicion observed that the aforesaid entry might be a bogus entry and that the assessee might have purchased the material from outside. A perusal of the reasons recorded by the Assessing Officer does not show that the Assessing Officer had any credible information or evidence to believe that the aforesaid transaction made by the assessee was bogus, rather, a reading of the whole of the contents of the document containing reasons for reopening of the assessment would reveal that the reopening of the assessment has been made merely on the basis of suspicion. Even the sales / consumption of the material purchased through the aforesaid transaction has not been doubted. Even the turnover and gross profits of the assessee during the year have considerably increased. Reassessment was quashed . (ITA No.1197/Del./2019  Bench ‘B’. dt .29 -9 -2021 )   ( AY. 2009 -10 )

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