2016 (6) TMI 136

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....to error in holding that the opening of assessment under Section 147/148 was not justified and legal in the circumstances of the case?" 2. The reasons for reopening of the assessment of the Respondent Assessee for AY 2004-05 has been set out in the assessment order dated 28th December 2008 passed by the Assessing Officer ("AO"). A survey was conducted in the case of one Mr Subodh Gupta, Chartered Accountant ("CA") on 30th October, 2003. During the course of that survey it transpired that the Director of the Respondent Assessee was involved in providing bogus accommodation entries. Specific reference was made to the reply given by Mr Gupta to question No.24 in which he is said to have admitted that the companies floated by him, including ....

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....ve mentioned parties and in view of the statement of Shri Subodh Gupta that he was charging a premium of 0.50/0 to 1.50/0 on the amount of entry given, it would thus be fair to estimate amount of premium received on such investment at 1% which will be added to the income to the assessee." The AO further held that the amount of investment made by the assessee company during the year would also added to the income of the Assessee company as income from undisclosed sources on "protective basis" till the amount of the accommodation entries was assessed in the hands of the respective beneficiaries on substantive basis. 4. The above addition was upheld by the Commissioner of Income Tax Appeal (Appeals) by the order dated 9th January, 2013. The....