TaxTMI 
TaxTMI 
2012 (5) TMI 645
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....vance of revenue is that Ld CIT (A) has erred in deleting the addition of Rs. 70,00000/- which was added by the Assessing Officer with the aid of Section -68 of the IT Act 1961. 2. The brief facts of the case are that assessee has filed its return of income on 25.11.2003, declaring a loss of Rs. 1,64,320/-. The return was processed u/s 143 (1) of the IT Act. According to the Assessing Officer the Investigation Wing of IT Department of Ghaziabad, had transmitted information to him that certain persons were involved in providing accommodations entries on receipt of Commission. The information suggest that assessee is one of the beneficiary of the accommodation entries. He recorded reasons and reopened the assessment by issuing notice u/s 148....
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....evailing as per record. The trail of cheques issued to the cash deposit in the bank account of M/s Mahaan Enterprises Ltd had been clearly established from the copy of bank statements furnished. There is a systematic plan in which the cash is given to the entry provider who in turn issues the cheque of equal amount. It is a notorious practice which has been resorted to by various concerns. The money is received in the form of share application money/share capital/unsecured loans. The unaccounted money is given to the entry operator who is turn issues the cheque to the beneficiary. In lie of issuing the cheques the entry operator charges some commission with a certain percentage of the amount sought to be legitimized in the garb of cheques ....
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.... High Court rendered in the case of Nova Promotors reported in 342 ITR page 169. On the other hand Ld Counsel for the assessee submitted that after the Nova Promotors the Hon'ble Delhi High Court has upheld the deletion in the case of Goyal Sons Golden Estate P.Ltd vide order dated April 11, 2012. The facts of the assessee's case are identical to this case. The facts in the case of Nova Promotors are distinguishable. He pointed out that in the present case Assessing Officer was only possessing information transmitted by the Investigating Wing. The assessee has submitted documentary evidence i.e. copy of the income tax return of the share applicant, confirmation, bank statement etc. The Assessing Officer did not conduct any inquiry, he has n....
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....d thereafter point out as to how the evidence submitted by the assessee is not reliable. The Assessing Officer did not assign any reason as to why the explanation of the assessee is not tenable. He simply observed that explanation of the assessee is not acceptable. He fail to give reasons, as to why it is not acceptable. He has not disclosed what is the nature of information supplied by the Investigating Wing, How that information has an any nexus with the assessee or its share applicants. The Assessing Officer has not called for Sh. Sanjay Mohan Aggarwal for cross-examination, even he has not supplied to his statement to the Assessee which was recorded from the back of the assessee. The Assessing Officer has merely made general observation....
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....o produce them. The Assessing Officer did not consequent thereto conduct any inquiry and closed the proceedings. This is a case where the Assessing Officer has failed to conduct necessary inquiry, verification and deal with the matter in depth specially after the affidavit/confirmation along with the bank statements etc. were filed. In case the Assessing Officer had conducted the said enquiries and investigation probably the challenge made by the Revenue would be justified. In the absence of these inquiries and non-verification of the details at the time of assessment proceedings, the factual findings recorded by the Assessing Officer were incomplete and sparse. The impugned order passed cannot be treated and regarded as perverse. The appea....