TaxTMI 
TaxTMI 
2014 (8) TMI 761
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....e. 2. The ld.CIT(A) has erred on facts and in law in holding that re-opening of the case u/s 147/148 was not valid in law, especially in view of decision of the jurisdictional High Court in Midland Fruit and Vegetables Products (India) Ltd vs. CIT (1994) 208 ITR 266. 3. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 4. At the time of hearing before us, it is submitted by the learned DR that the Assessing Officer had received definite information from the Director of Income Tax (Investigation), New Delhi with regard to accommodation entries being provided by various entry operators. The assessee was the beneficiary of such accommodation entries. That during the course of investigation by the Investigation Wing, the so called creditors have accepted that they are only entry providers. That the Assessing Officer has reopened the assessment on the basis of specific information with regard to the accommodation entries taken by the assessee, the details of which are given in the reasons recorded which shows complete detail with regard to the date on which ....
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....005-06/2132 dated 13.03.2006. These enquiries were initiated to probe into some bank account which were used to issue cheques to entry seekers or beneficiaries against cash paid by them to the entry operators. Such a camouflaged transaction came to light during the course of survey in the case of M/s Gurcharan Jewellers whose proprietor Shri Ashok Kumar Chauhan had admitted to have taken cheques under the garb of gifts after giving cash to the entry operator. Probe was initiated into the accounts which were used to provide these entries. These investigations led to revealing of many more bank accounts which were being used by the entry operators for the purpose of giving accommodation entries. 2. Extensive enquiries were made into numerous such bank accounts, the account holders, the persons operating these accounts and the persons for whom such account holders were working. These enquiries revealed inter alia the following:- 2.1 Entries were being broadly taken for two purposes : * The plough back unaccounted black money for the purpose of business or for personal needs such as purchase of assets etc., in the form of gifts, share application money, loans etc. * To infl....
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....ipt of gifts or consideration for sale-purchase. It has also dealt a body blow to the creditworthiness of the persons/persons controlling the concerns who have given these credit entries/share capital/gifts/sale consideration as they have been seen to be the man of no means. 4. In the instant case of the assessee, M/s Comero Leasing & Financial Pvt.Ltd. the following credits have been shown in the bank account of the assessee company:- 5. In view of the findings of the investigation report in these cases have been proved to be men/parties of no creditworthiness. The statements on oath and the letters of admission clearly show that these transaction are non genuine. Therefore the aforesaid credit entries are squarely hit by section 68 of the I.T. Act. I, therefore, have reasons to believe that this amount of Rs. 53,00,000/- represents income of the assessee chargeable to tax which has escaped assessment for A.Y. 01-02. Sd/- Income Tax Officer Ward-3(4), New Delhi." 7. From the above, we find that at paragraph Nos.1, 2 & 3, the Assessing Officer has discussed the facts in general i.e., the investigation carried on by the Director of Income Tax (Investigation) and th....
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....ase. 9. Learned DR has also relied upon the two decisions of Hon'ble Jurisdictional High Court. The first one was in the case of Nova Promoters and Finlease (P) Ltd. (supra). However, from a perusal of the order of Hon'ble Jurisdictional High Court, we find that the issue of reopening of assessment was not before their Lordships but the issue before the Hon'ble Jurisdictional High Court was only with regard to certain cash credits. Therefore, the aforesaid decision cannot be said to be applicable to the facts of the assessee's case. Learned DR has also relied upon the decision of Hon'ble Jurisdictional High Court in the case of A.G. Holdings Pvt.Ltd. (supra). In this case, the assessment was reopened after four years from the end of the relevant assessment year. It was contended by the assessee that there was no failure on the part of the assessee to disclose all material facts because in the documents attached to the return of income, all primary facts were disclosed. Hon'ble Jurisdictional High Court did not accept the assessee's contention and held :- "dismissing the petition, (i) that the documents attached to the return of income were only the statuto....