2008 (8) TMI 401

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....000-01 assessment was completed under s. 143(3) of the Act which were sought to be reopened by the issuance of notice under s. 148 of the Act based on the information received from the office of the Director General of IT (Inv.), Lucknow with regard to complaint against Sahara Pariwar. Though the. assessee challenged the reasons for reopening the assessment, the AO as well as CIT(A) rejected the contentions of the assessee. On merits however the learned CIT(A) granted substantial relief to the assessee and thus separate appeals were not filed by the assessee. The Revenue having preferred appeals against orders passed by the CIT(A), by way of cross-objections the assessee challenged the jurisdiction of the AO in reopening the assessment by i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f services rendered in relation to the land deals. Further, Mrs. Rainee Singh has also only shown a surplus of just Rs. 1.07 crores out of the land transactions. It is thus apparent that Mrs. Rainee Singh has diverted her income amounting to Rs. 6.30 crores by way of showing the bogus payment of Rs. 6.30 crores to M/s Rathi Ispat Ltd. Which is a loss making company. Presumably, the sum of Rs. 6.30 crores might have been taken back in cash from M/s Rathi Ispat Ltd. by Mrs. Rainee Singh, proprietor M/s Rainee Creations." 4. The learned counsel submitted that the reasons recorded merely reflect the suspicion of the AO and not the satisfaction recorded before issuance of notice under s. 148 of the, Act and on mere suspicion reopening is not pe....