TaxTMI 
TaxTMI 
2015 (3) TMI 1185
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....it up first. 3. It is a case of, as we have noted above, reopened assessment. The case was reopened on the basis of a report received from the Dy Director of Income Tax (Investigation) stating that the amount of Rs. 4,00,000 received by the assesse, by way of a Manager's cheque issued by the HDFC Bank, constituted an accommodation entry as it was got made by Harish Pawar from the account of Amrit Impex (India) was an accommodation entry as this person, in a statement before the investigation wing, had "accepted that the bank account of M/s Amrit Impe (India) has been used for providing accommodation entries". The assesse objected to this reopening on several grounds, including the ground that the AO had not applied his mind to the matter, ....
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.... the question as to whether such an information constitutes legally sustainable reasons for reopening the assessment. The question of existence or adequacy of reasons for reopening the assessment will still be a step away from this fundamental exercise. As we make note of this position, we may also refer to the observations made by Hon'ble jurisdictional High Court, in the case of CIT Vs Pradeep Kumar Gupta (303 ITR 95), as follows: 4. Having heard learned counsel for the parties at great length, we are of the view that the Order of the ITAT is unassailable. In this case, the assessment had not been completed under Section 143(3) of the IT Act. There are banking transactions between the Assessees and Shri Anand Prakash and, therefore, i....
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....y in order to upset the Return filed by an Assessee. 5. This is where the failure of the Revenue to produce Shri Anand Prakash for cross-examination by the Assessees, assumes fatal consequences. Reassessment proceedings have been initiated after several years of the acceptance of the Return under Section 143(1) of the IT Act. The Assessees have themselves relied on the banking transactions between themselves and Shri Anand Prakash; secondly on bills issued by them to Shri Anand Prakash, and on the unassailed payment of rent to Shri Mool Chand. It is true that the Assessees failure to produce Shri Kishan Chand had the consequence of not proving that the said person was tilling the land on their behalf. This failure cannot inexorably lead t....