M Shashikant And Co vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, M Shashikant And Co, is engaged in the business of trading and export of cut and polished diamonds. The return of income for the year under consideration was filed on 05.08.2010 and was processed under section 143(1) of the Income Tax Act, 1961. Subsequently, the assessment was reopened under section 147 on the basis of information received from the Investigation Wing pursuant to a search and seizure action conducted by the Directorate General of Income Tax (Investigation), Mumbai, on 03.10.2013 in the case of the Rajendra Jain Group. It was alleged that the assessee had obtained accommodation purchase entries from M/s. Aadi Impex and M/s. Kailash Enterprises. The assessee provided comprehensive documentary evidence to substantiate the genuineness of the purchases, including purchase invoices, account confirmations, bank statements, and sworn affidavits.…

Legal Issues

• 1. Validity of assumption of jurisdiction under section 147 of the Income Tax Act, 1961
• 2. Addition of ₹59,11,774/- made by treating the purchases as bogus

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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