TaxTMI 
TaxTMI 
2011 (3) TMI 954
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....edit worthiness of the creditors and buyers of the shares and also to prove the genuineness of the transactions. 03. The appellant craves leave to add, to alter, or amend any ground of the appeal raised above at the time of the hearing. 3. The assessee has taken the following grounds in the cross objection:- "1. The Ld. CIT (A) has erred dismissing ground no.1 and 2 and sustaining the reopening of the case u/s 147/148 as the ld. A.O. has not recorded proper reasons for reopening of the assessment and what is recorded is merely information received by him. 2. That the appellant craves leave to add/alter any/all grounds of appeal before or at the time of hearing of the appeal." 4. The original return of income was filed by the assessee company on 30.12.2001 declaring a loss. The return was accepted u/s 143(1). Subsequently, an information was received by the Assessing Officer from the investigation wing of department to the effect that certain persons are engaged in providing accommodation entries to the needy persons/beneficiaries against payment of certain commission. The assessee was stated to be one of the beneficiaries. After rec....
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....the assessee on 12.11.2008. The assessment was finalized u/s 147/143(3) on 30.12.2008. He submitted that the assessment was reopened on the basis of information received from investigation wing without application of mind by the Assessing Officer. There is no nexus between the reasons recorded and income of the assessee. In the reasons recorded, the Assessing Officer alleged that the assessee has received share application money as an accommodation entry to the tune of Rs.25 lacs. However, assessee has received share application money only of Rs.9 lacs and the rest of the amount was received by the assessee on account of sale of its earlier investments. He pleaded that entire reopening proceedings are vitiated. Further, he also pleaded that it is a settled law that Assessing Officer cannot go beyond reasons and only reasons have to be looked into and relied on the decision of ITAT Agra Bench in the case of Saraf Mandi Samiti, 108 ITD 115 (Agra). 8. On the other hand, the learned DR. submitted that the original assessment was not completed u/s 143(3) of the Income-tax Act. Subsequently, the information was received by the Assessing Officer from the investigation wing that ....
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....Rs.9 lacs and Rs.16 lacs respectively. 11. The revenue has contended that the assessee has failed to discharge the onus by providing the source and creditworthiness of the creditors and buyers of the shares and also to prove the genuineness of the transactions. 12. Learned DR relied on the order of the Assessing Officer. While the learned AR relied on the order of CIT (A) and also relied on the latest decision of Hon'ble Delhi High Court in ITA Nos.2093 to 2095/2010 in the case of Oasis Hospitalities (Pvt.) Limited dated 31.1.2011 from paras 25 to 35. 13. After hearing both the sides on the issue, we find that the assessee has provided the following information in respect of the shareholders and the persons to whom the sale proceeds of shares were issued:- "1. Harpal Associates Pvt. Ltd. (A) Confirmation of transaction by letter (B) Copy of Board resolution (C) Copy of Covering letter for delivery of shares (D) Copy of PAN (E) Copy of Company master data as per Ministry of Corporate Affairs records (F) Copy of Annual Return (G) Copy of Memorandum and Articles of Association....
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....ent of Rs. 12.40 lacs during the year." We find that Hon'ble Delhi High Court in the case of Oasis Hospitalities (Pvt.) Limited, cited supra, wherein at para 28 the Hon'ble High Court has held as under:- "28. The assessee filed copies of PAN, acknowledgement of filing income tax returns of the companies, their bank account statements for the relevant period, i.e., for the period when the cheques were cleared. However, the parties were not produced in spite of specific direction of the A.O. instead of taking opportunities in this behalf. Since the so-called Directors of these companies were not produced on this ground coupled with the outcome of the detailed inquiry made by the Investigating Wing of the Department, the A.O. made the addition. This addition could not be sustained as the primary onus was discharged by the assessee by producing PAN number, bank account, copies of income tax returns of the share applicants, etc. We also find that the Assessing Officer was influenced by the information received by the Investigating Wing and on that basis generally modus operandi by such Entry Operators is discussed in detail. However, whether such modus operandi exist....