TaxTMI 
TaxTMI 
2013 (5) TMI 414
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....hat as there has been no failure on the part of the assessee to disclose material facts and the same is also not alleged either in the notice under Section 148 or in the reasons recorded for initiating reassessment proceedings, the reassessment proceedings are illegal and without jurisdiction. In absence of failure, on the part of the assesse, to disclose fully and truly all material facts necessary for the proceedings, the Assessing Officer would lack the jurisdiction to initiate reassessment proceedings. Consequently, the Tribunal has quashed the reassessment order. 2. The challenge on the part of the revenue to the order passed by the Tribunal has to be considered in light of the following facts. 3. The assessee filed its return of income on 31.03.2003 declaring an income of Rs. 30,18,779/-. The said return was initially accepted under Section 143(1) on 30.05.2003. However, subsequently on 20.10.2003, the same was taken up for scrutiny. The balance sheet and the books of account of the assessee disclosed that, during the relevant previous year, the assessee had received an aggregate sum of Rs. 4,82,01,000/- as share application money from various persons and the same was outst....
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....The assessee further produced evidence to show that in some cases, the share application money had since been refunded. The CIT (Appeals) forwarded the additional evidence produced by the assessee to the Assessing Officer for examining the same and furnishing a report thereon. The Assessing Officer submitted a report dated 07.10.2005 reiterating the issues mentioned in the assessment order. The CIT (Appeals) concluded that some of the persons to whom summons had been issued could not appear before the Assessing Officer due to paucity of time and, in the light of the subsequent evidence, deleted the additions made by the Assessing Officer to the extent of Rs. 37 lacs. The addition of Rs. 5 lacs in relation to the share applicant who had categorically stated that she had no link with the assesse was upheld by the CIT(A). 5. It can be seen from the above facts that the assessee furnished all particulars relating to the share application money including confirmations from the share applicants as well as other evidence in relation to those persons, who the Assessing Officer had found to be suspect. 6. It is the case of the revenue that during certain investigation proceedings, a state....
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.... 26-JUL-01 --DO-- --DO-- --DO-- 50088 500000 26-JUL-01 --DO-- --DO-- --DO-- 50088 500000 26-JUL-01 --DO-- --DO-- --DO-- 50088 500000 495673 21-JUL-01 DINANAT H LAHURIWALA OBC MINTO ROAD 19 500000 495673 21-JUL-01 --DO-- --DO-- --DO- 19 500000 495673 21-JUL-01 --DO- --DO- --DO- 19 500000 495673 21-JUL-01 --DO- --DO- --DO- 19 500000 495673 21-JUL-01 --DO- --DO- --DO- 19 500000 495673 21-JUL-01 --DO- --DO- --DO- 19 500000 495673 21-JUL-01 --DO- --DO- --DO- 19 250000 142208 30-JUN-01 DINESH GUPTA JAILAXMI COOP BANK FATEHP URI 11246 250000 142208 30-JUN-01 --DO-- --DO-- --DO-- 11246 250000 142208 30-JUN-01 --DO-- --DO-- --DO-- 11246 250000 142208 30-JUN-01 --DO-- --DO-- --DO-- 11246 250000 142208 30-JUN-01 --DO-- --DO-- --DO-- 11246 250000 142208 30-JUN-01 --DO-- --DO-- --DO-- 11246 500000 257601 6-JUL-01 ENPOL(PVT) --DO-- --DO-- 3340 500000 257601 6-JUL-01 --DO-- --DO-- --DO-- 3340 500000 257601 6-JUL-01 --DO-- --DO-- --DO-- 3340 500000 257601 6-JUL-01 --DO-- --DO-- --DO-- 3340 500000 257601 6-JUL-01 --DO-- --DO-- --DO-- 3....
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....MINTO ROAD 33 500000 503258 27-JUL-01 --DO-- --DO-- --DO-- 33 500000 503258 27-JUL-01 --DO-- --DO-- --DO-- 33 500000 503258 27-JUL-01 --DO-- --DO-- --DO-- 33 500000 503258 27-JUL-01 --DO-- --DO-- --DO-- 33 500000 503258 27-JUL-01 --DO-- --DO-- --DO-- 33 500000 25-JUL-01 TECNOCO M ASSOCIAT ES PVT. SBP DG 50060 500000 25-JUL-01 --DO-- --DO-- --DO-- 50060 500000 25-JUL-01 --DO-- --DO-- --DO-- 50060 500000 25-JUL-01 --DO-- --DO-- --DO-- 50060 500000 25-JUL-01 --DO-- --DO-- --DO-- 50060 500000 25-JUL-01 --DO-- --DO-- --DO-- 50060 500000 145067 02-JUL-01 VIPIN KUMAR JAILAXMI COOP BANK FATEH PURI 9378 500000 145067 02-JUL-01 --DO-- --DO-- --DO-- 9378 500000 145067 02-JUL-01 --DO-- --DO-- --DO-- 9378 500000 145067 02-JUL-01 --DO-- --DO-- --DO-- 9378 500000 145067 02-JUL-01 --DO-- --DO-- --DO-- 9378 500000 145067 02-JUL-01 --DO-- --DO-- --DO-- 9378 3,65,80, 000 TOTAL AMOUNT In this case information have been received that their goods have been seized by DRI and also penalty of Rs 2 Crores ....
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....ed assessment on that count and thus the only reason for initiating proceedings under Section 147/148 are the alleged accommodation entries purportedly totaling Rs. 3,65,80,000/-. 10. The Assessing Officer once again commenced inquiries with regard to the amount received by the assessee as share application money, in the reassessment proceedings and concluded that the identity, creditworthiness of the share applicants and the genuineness of the transactions in relation to share application money totaling a sum of Rs. 4,75,01,000/- was not established and accordingly made an addition of the said amount. The Assessing Officer made a further addition of Rs. 3,46,00,000/- to the income of the assesse on the alleged ground of concealment of goods. The order of reassessment dated 24.12.2009 was carried in appeal by the assessee, however the same was dismissed by the CIT (Appeals) by an order dated 25.03.2010. 11. The assessee thereafter preferred an appeal before the Tribunal against the order dated 25.03.2010 passed by the CIT (Appeals), inter alia, on the ground that the reassessment proceedings were based on change of opinion and the same were initiated without there being a reason ....
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....identity, genuineness and the creditworthiness of the share applicants, it would not be open for the Assessing Officer to re-examine the same without there being any material allegation of failure, on the part of the assesse, to make a full and true disclosure. It is well-settled that in order to invoke the provisions of Section 147 of the Act, after a period of four years from the end of the relevant assessment year, in addition to the Assessing Officer having reason to believe that any income has escaped assessment, it must also be established that the income has escaped assessment on account of the assessee failing to make returns under Section 139 or on account of failure on the part of the assessee to disclose, fully and truly, the necessary material facts. This Court in the case of Wel Intertrade P. Ltd. & Anr. v. ITO: (2009) 308 ITR 22 (Del) and Haryana Acrylic Manufacturing Company v. CIT &Anr.: (2009) 308 ITR 38 (Del) held that it would not be open for the Assessing Officer to reopen the assessment already done beyond the period of four years unless the income has escaped assessment on account of failure, on the part of the assesse, to disclose all the material facts. In t....