TaxTMI 
TaxTMI 
2010 (9) TMI 1074
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....accommodation entries amounting to Rs. 42,03,250/-, while in the Cross objection assessee has canvassed that Ld. Commissioner of Income Tax (Appeals) erred in law in confirming the action of the Assessing Officer in assuming jurisdiction u/s 147 of the IT Act. 3. In this case assessee filed return of income on 25.10.2001. the assessment was completed on 9.12.2002 and the income was revised to Rs. 39,73,739/-, as result of order giving effect to Ld. Commissioner of Income Tax (Appeals)'s order dated 24.3.2003. Notice u/s 148 was issued to the assessee on 28.3.2008. Assessing Officer noted that from verification from the case records, it has been observed that assessee had received accommodation entries of Rs. 42,03,250/-. The assessee was....
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....) at the threshold assessee agitated against the reopening. Ld. Commissioner of Income Tax (Appeals) in the appellate order noted that reasons recorded for reopening was as under:- "The reason recorded is as under:- 1. In this case, the assessment was completed u/s 143(3)(i) on 25.10.2001 as a total income of Rs. 39,73,740/- against the returned income of Rs. 3873870/-. 2. Certain investigations were carried out by the Directorate Income Tax (Investigation)-I, New Delhi in respect of the bogus / accommodation entries provided by certain individuals/ companies. The name of the assessee company figures as one of the beneficiaries of these alleged bogus transactions given by the Directorate after making the necessary enquiries. The na....
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....terial on the basis of which Assessing Officer could form a belief that there is escapement of income. Second, even if some material was there, there was certainly no live nexus between the material and the formation of the impugned belief. However, Ld. Commissioner of Income Tax (Appeals) did not accept this contention and affirmed the jurisdictional aspect. However, on the merits of the case, the Ld. Commissioner of Income Tax (Appeals) deleted the addition. 6. We have heard both the counsel and perused the records. Ld. counsel of the assessee submitted that reopening issue is covered in favour of the assessee in light of this Tribunal decision in ITANo. 589/Del/2009 for A.Y. 1995-96 in the case of ACIT vs. Shri Raj Kumar Bhatia vide o....
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....as admitted to issue bogus bills as discussed above. Therefore, it shows that all the transactions are bogus and a way to account for the undisclosed money of the assessee. Subsequently, the assessee deposited the sale proceeds of Rs. 27 lacs in capital gains scheme account no. 50100. After that the assessee invested the same consideration in the construction of H.No. 1359, Sector-24, Faridabad. Accordingly, the amount invested by the assessee and shown as received on sale of shares represents the assessee's own money from undisclosed sources. Under these circumstances, I have therefore reason to believe that income of the assessee to the extent of Rs. 27,00,000/- has escaped assessment within the meaning of section 147 of the Income ....
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.... was duly disclosed in the course of the original assessment proceedings. The fact that the assessee deposited the amount of long term capital gain in the specified scheme was also duly disclosed. As noted by the Ld. Commissioner of Income Tax (Appeals), the details about the shares sold and documents in relation there to were produced in the original assessment proceedings. Summons u/s 131 were served on M/s Ashoka Commercial Ltd. for verification and veracity of share holdings by the assessee in the said company. The company through its Secretary vide letter dated 19.12.2007 stated that the assessee hold 70,000 shares in M/s Ashoka Commercial Ltd.. On the basis of confirmation given by the company and other evidences produced by the asses....
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....by us." 6.1 In the present case also reopening has been done on the basis of information received from Investigation Wing. As referred above the Hon'ble Delhi High Court has observed that the condition that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment been got to be satisfied, and the Assessing Officer has to prove and establish that assessee has failed to disclose fully and truly material facts necessary for the assessment and he has to state so in the reasons records. In the present case also there is no whisper of the allegation in the reasons recorded that the assessee has failed to disclose fully and truly all material facts necessary for assessment. Origin....