2014 (11) TMI 56

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....5 of 2009. 2. I. T. A. No. 505 of 2009 has been preferred by the Revenue under section 260A of the Income-tax Act, 1961 (in short, "the Act"), against the order dated January 20, 2009, annexure A.4 passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (in short, "the Tribunal"), for the assessment year 2000-01, claiming the following substantial questions of law :            "(i) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in concluding that the Assessing Officer could not have assessed the income chargeable to tax which has come to his notice subsequently in the course of proceedings under section 147 though w....

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....managed and controlled by Shri Kapil Aggarwal and Shri V. K. Umat, chartered accountants of Amritsar, were involved in providing accommodation entries to various assessees. One such finance company was M/s. Mehak Finvest P. Ltd. The bank accounts of this finance company were first used to receive cash and then to issue accommodation entries. All the accounts were held in the name of various employees of Shri Kapil Aggarwal and Shri V. K. Umat, chartered accountants. Accordingly, the Assessing Officer had reason to believe that income chargeable to tax had escaped assessment. The Assessing Officer initiated proceedings under section 147 of the Act. It was noticed that fresh share application money amounting to Rs. 47,00,000 could not be expl....

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....[2011] 331 ITR 236 (Bom), Ranbaxy Laboratories Ltd. v. CIT [2011] 336 ITR 136 (Delhi), Balbir Chand Maini v. CIT [2012] 340 ITR 161 (P&H), CIT v. M. P. Iron Traders [2004] 189 CTR 154 (P&H) and CIT v. Empire Finvest Ltd. (I. T. A. No. 421 of 2009, decided on November 26, 2009), to contend that the Tribunal had rightly decided the issue in favour of the assessee. It was submitted that the Tribunal had relied upon the decision in Empire Finvest Ltd.'s case (supra) against which no appeal had been filed. In the present case, the circumstances being similar, the appeal be dismissed. 6. After hearing learned counsel for the parties, in our view, the appeal deserves to succeed. Explanation 3 to section 147 has been inserted by the Finance ....