AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (9) TMI 903
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....t any time before or during the hearing of this appeal." 3. The assessee has raised the following grounds in its Appeal for the asstt. year 2002-03 1. Whether the CIT(A) has failed to appreciate that the reassessment proceedings for the year are based on reverification of records submitted in the course of original assessment proceedings completed after due scrutiny under sec 143 (3) of IT Act, thus not valid. 2. Whether the order of the CIT(A) is just and reasonable in the facts and circumstances to confirm the order of A.O. even when it is pointed out that it is a case of "Change of Opinion" on the information already submitted. 3. Whether CIT(A) has passed the order without appreciation of information already on record, reasons of satisfaction recorded for reopening, and the reassessment order passed by A.O. are all not connected with each other. 4. Whether the assessee having discharged obligations and filed all necessary documents, confirmations at the time of original assessment sufficient to meet the satisfaction under section 148 proceedings when the assessing officer having accepted those confirmation and information in original assessment proceedings. 5. W....
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....he appellant was asked to prove the genuineness of transaction of receipt of money from Onyx Exim & Sales Pvt Ltd, Aay Kay Investments, Deeksha Fincap Securities Pvt Ltd, M V Marketing Pvt Ltd, Polo Leasing & Finance Pvt Ltd. The appellant's AR filed confirmation, copy of accounts, share application & some other documents with various letters before the AO. The AO required the appellant to produce the parties for examination. A show cause notice was also issued as to why these amounts should not be treated as income of the appellant in absence of further explanation. The appellant replied to the AO by letter dated 12/11/08 that it was not able to produce these parties and the AO may exercise powers as provided in law to call the parties directly. The AO issued summons to these parties but none of them attended. The AO accordingly noted that the appellant failed to comply with the requirements of notices and did not discharge its onus to prove the genuineness of these entries. Therefore he added aggregate amount of Rs. 26 lacs received in respect of seven parties namely Sh Shujjit Hussain Mall, Amit Kr Singh, Onyx Exim & Sales Pvt Ltd., Krishna Cinema (India), Aay Kay Investment....
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....t Ltd & Polo Leasing The amount of Rs. 4 lacs, 3 lacs & Rs. 3 lacs respectively was received from these parties towards share application money. Copy of share application form, confirmation and acknowledgement of return of the said party was filed. Deeksha Fincap Securities Pvt Ltd Payment from company was also received by way of share application money. Copy of share application form and confirmation was enclosed. , However this amount was returned to that party by account payee cheque in the next year on 28/08/01 which fact is also mentioned in the confirmation letter. It was submitted that the relevant documents in support of the transaction were filed before the AO during the assessment proceedings. The appellant's AR contended that the AO's observation that the appellant failed to comply with the notice u/s 142(1) was in correct because the details required by the AO were duly filed before him. On the other hand it was contended that the AO has mentioned in the names of Sujjit Husain Mallick, Krishna 'Cinema India Ltd and Amit Kr Singh without any relevance because no payments were received from these parties during the, year. These parties do not find ....
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.... received towards share application money from different parties to one of the parties it was returned in subsequent years. I agree with the appellant's contention that in 147 proceedings primary onus was upon the AO to confront the appellant with evidence or material on the basis of which allegation about escapement of income is made. The appellant has to give opportunity to rebut or counter the said material. This has been held by Delhi High Court in the case of Pradeep Kumar Gupta 207 CTR 115. However the AO did not bring on record any material or evidence proves that the various payments received were in the nature of accommodation entry. Simply the explanation was called for in response to which the appellant submitted various documents in support of the transactions. All the transactions have been carried out through account payee cheque and confirmations, share application forms, written acknowledgement of these parties have been filed. The AO rejected the said explanation merely on the ground that the summons issued by him was not responded to. Since the concerned parties were assessed to tax and their return acknowledgements were submitted, the facts could have been ve....
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....ed that the reassessment proceedings for the year are based on re- verification of records submitted in the course of original assessment proceedings completed after due scrutiny under sec 143(3) of IT Act, thus not valid. He further submitted that whether the order of the Ld. CIT(A) is just and reasonable in the facts and circumstances to confirm the order of A.O. even when it is pointed out that it is a case of "Change of Opinion" on the information already submitted; the order passed by the authorities below is passed without appreciation of information already on record, reasons of satisfaction recorded for reopening, and the reassessment order passed by A.O. are all not connected with each other. He further submitted that assessee had discharged obligations and filed all necessary documents, confirmations at the time of original assessment sufficient to meet the satisfaction under section 148 proceedings when the assessing officer having accepted those confirmation and information in original assessment proceedings. To support his contention, he referred the various case laws of the Delhi High Court by which the present case of the assessee is covered including the case of Sig....
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....2014 of the Tribunal, the Department went in Appeal before the Hon'ble Delhi High Court, in ITA No. 486/2015 in the case of Pr. CIT vs. Sh. Govind Kripa Builders Pvt. Ltd. and the Hon'ble High Court of Delhi vide its order dated 04.8.2015 has observed as under:- "3. It is seen that the ITAT has in the impugned order dated 19th December, 2014 passed in ITA No. 304/Del/2013 for the Assessment Year 2008-09 relied upon the judgment of this Court in Signature Hotels P. Ltd., vs. ITO [2011] 338 ITR 51 (Delhi) and come to the conclusion that the AO did not apply his own mind to the information and the materials forming the basis of the information. 4. The Court finds no legal error whatsoever in the ITAT coming to the above conclusion. In the facts and circumstances of the present case, no substantial question of law arises for determination by the Court." 16.2 We also find from the records that earlier scrutiny assessment u/s. 143(3) was completed vide order dated 28.2.2005 and (ii) four years have elapsed on date of instant reopening (23.3.2009) and (iii) in reasons recorded allegation was made for income escaping assessment of Rs. 24.50 lacs as mentioned on page no. 1 of the imp....