TaxTMI 
TaxTMI 
2014 (1) TMI 1312
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....00,000/- made by the Assessing Officer u/s 68 of the Act on account of unexplained cash credits and Rs.10,000/- on account of commission paid from undisclosed sources ignoring the fact that a) the assessment order passed by the Assessing Officer is based on information received from the Investigation Wing of the Department that the Assessee Company has received bogus entries amounting to Rs.20 lacs from different entry operators. b) The A.O. has based the assessment by relying upon the statement of Shri S.H. Mallick, Director in many Companies engaged in providing entries, recorded by the Investigation Wing who deposed that the Companies were not doing any actual business other than giving accommodation entries by way of cheque/DD/PO ....
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....3,00,000/- Bank of Madura, Noida Inst No. 66568 01 sept 2000 M/s Onyx Exim & Sales Pvt. Ltd., Keshav Sehkari Co-Op. Bank Karol Bagh Account No. 429 Aryan Management Services (Pvt.) Ltd. Rs.4,00,000/- Bank of Madura, Noida Inst No. 786526 13 sept 2000 M/s Welcome Coir Industries Ltd. Corporation Bank Karol Bagh Account No. 3694 In view of the above credible information received from the DIT (Inv.), I have reasons to believe that the income of my assessee who stands as a beneficiary from the entry provider, which is chargeable to tax has escaped assessment as per the provisions of Section 147 (a), (b) & (c) of the Income Tax Act, 1961. I am, therefore, satisfied that the said income on accommodation entries as mentioned a....
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.... submitted that against this decision of the Hon'ble Bombay High Court, an SLP had been filed by the Department, in SLP (C) No.6757 of 2009, which stands dismissed by the Hon'ble Supreme Court vide order dated 16.03.2009. 6. It has next been contended on behalf of the assessee that it is apparent from the reasons recorded by the Assessing Officer for reopening the completed assessment of the assessee, that the notice u/s 148 of the Act was issued in a merely mechanical manner, based on information from the Investigation Wing of the department; that the Assessing Officer, while recording the reasons, did not go into the veracity or the best of the information received; that he did not mention any material which would have lead him to beli....
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....cer to have reasons to believe for escapement of income. Reliance has been placed on 'CIT vs. Gupta Abhushan Pvt. Ltd.', 312 ITR 166 (Del); 'Dass Friends Builders (P) Ltd.', 280 ITR 77 (All) and 'Indian Oil Corporation vs. ITO and Ors.', 159 ITR 956 (SC). 10. Lastly, it has been argued that for justification of notice u/s 148 of the Act, only the reasons recorded by the Assessing Officer are to be considered and that such notice cannot be supported by any other fact. Reliance in this regard has been placed on 'Northern Exim Pvt. Ltd. vs. DCIT', 2012-TIOL-220-HC-DEL-IT and 'Prashant S. Joshi vs. ITO', 1 Taxman.com 103 (Bom). 11. The Ld. DR has, on the other hand, relied on the impugned order in this regard. 12. We have heard the par....