The notice under section 148 was issued beyond four years from the end of the assessment year merely on the basis of information received from the Investigation Wing. The Tribunal held that the Assessing Officer neither conducted any independent enquiry nor recorded his own satisfaction regarding escapement of income. The reopening was based entirely on borrowed satisfaction and was therefore void. The reasons recorded for reopening referred to an incorrect entity from whom the assessee had allegedly made bogus purchases. The Tribunal held that this demonstrated complete non-application of mind while recording the reasons to believe. Consequently, the reassessment proceedings and the notice issued under section 148 were held to be void ab initio. The Assessing Officer treated purchases as bogus solely on the basis of statements of suppliers recorded behind the assessee’s back without permitting cross-examination. The assessee produced purchase invoices, stock records, transportation details and evidence of payment through banking channels. The Tribunal held that the books of account were not rejected, stock records and sales were accepted, and no defect was found in the documentary evidence. Since no opportunity of cross-examination was granted, the addition under section 69C was deleted.\u00a0 (AY. 2014-15).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147 : Reassessment-After the expiry of four years-Bogus purchases-No independent enquiry-Reassessment invalid-Incorrect reasons recorded-Wrong entity mentioned-Proceedings void ab initio-Addition based on third-party statements without cross-examination-Addition deleted.[S.69C, 148, 149]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63532","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gwI","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63532"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63532\/revisions"}],"predecessor-version":[{"id":63533,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63532\/revisions\/63533"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}