2015 (5) TMI 81

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.... Act') and the impugned order 19th December, 2014 rejecting the Petitioner's objection to the reasons forming the basis for issuing the impugned notice. The Petitioner is a partnership firm and the original assessment was completed under Section 143(3) of the Act. During the scrutiny of the assessment, the Petitioner was on 3rd November, 2008 required to answer certain questions at Serial Nos. 8, 12 and 14 of the questionnaire pertaining to details regarding loans and advances both secured and unsecured and information regarding interest. The Petitioner filed a detailed reply to the questionnaire and thereafter, the Petitioner was called upon to provide details pertaining to four parties viz. Daksh Diamonds, Jewel Diam, Laxmi Tradin....

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....me Tax, 24(3), Mumbai dated 25th February, 2015 has been filed in reply on behalf of Respondents. In the said affidavit the deponent has denied that the notice is bad in law and reiterated that the assessee has not disclosed the material facts fully and truly that are necessary for the assessment and taken unaccounted cash into its books. There is a bald statement made that there is tangible material to reopen the assessment. We do not find anything in the said affidavit that establishes that there is reason to believe that the income has escaped assessment. 6. We have heard Mr. Pardiwalla, learned senior counsel appearing on behalf of the Petitioner and Mrs. Bharucha appearing on behalf of the Respondent. Mr. Pardiwalla contended that t....

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....eopening of the assessment was necessary. The Deputy Commissioner also called upon the Petitioner to provide information in respect of the aforesaid four parties. 7. Vide letter dated 7th November, 2011 these particulars were provided to the Deputy Commissioner. The petitioner inter alia pointed out that the aforesaid four parties had advanced loans through account payee cheques which were encashed in the Petitioner's bank account used for business transactions. Interest is also paid on these loans and at the time of payment of interest, tax was deducted at source and TDS returns were also filed. The Revenue has contended that they were accommodation entries only on the basis of mere surmises and guesswork which amounted to a change ....