2016 (6) TMI 214

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....w. 2. That on the facts and circumstances of the case and in law, the CIT(A) was not justified in holding that reassessment proceedings are valid even though the notice of re-opening was not supplied within 6 years time limit as provided in Section 149 of the Income Tax Act, 1961. 3. That on the facts and circumstances of the case and in law, the CIT(A) was not justified in holding that the reassessment proceedings was not illegal and void-ab-initio even though there was absence of reasons to believe that there was escapement of income and moreover the case of the assessee falls in first proviso to section 147 of the Income-tax Act. 4. That on the facts and circumstances of the case and in law, the CIT(A) was not ....

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....7 of the Act by issuing notice u/s 148 of the Act but the assessee did not file the return of income in compliance to the said notice u/s 148 of the Act within the stipulated time and asked the copy of reasons recorded for re-opening the assessment. The AO observed that in this case, a specific information was received from the Investigation Wing and that the AO had reason to believe that the assessee had received amounts through cheques / pay orders totalling to Rs. 11,00,000/- i.e. 5 lacs from M/s. Shastri Eincapvest Pvt. Ltd. on 13.6.2002, Rs. 2 lacs from M/s. ABN Aluminimum Industries on 04.09.2002 and Rs. 4 lac from M/s. Natraj Communications Pvt. Ltd. on 05.09.2002 which are entry operator and indulged in receiving accommodation entri....

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....e-opened under presumption by the A.O. was not tenable. The reliance was placed on the order dated 8.10.2015 of the Hon'ble Jurisdictional High Court in ITA no. 545/2015 in the case of Principal Commissioner of Income-tax vs. G & G Pharma India Ltd. copy of the said order was furnished which is placed at page no. 88 to 95 of the assessee's paper book. It was further submitted that the assessee repaid the loans in the year under consideration itself and genuineness of those loans were not doubted while framing the assessment u/s 143(3) of the Act. 6. In his rival submissions, The ld. DR supported the orders of the authorities below and further submitted that the AO received the specific information from the Investigation Wing, on the basi....

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....HP URI 3027 2 Dhanuka Pesticides Ltd. SBP 2,00,000 04.09 .2002 ABN Aluminium Industries JAILAXMI COOP BANK FATEHP URI 3033 3 Dhanuka Pesticides Ltd. SBP road 4,00,000 05.09 .2002 Natraj Communication (P) Ltd. JAILAXMI COOP BANK FATEHP URI 21165   Therefore, I have reasons to believe that an income of Rs. 11,00,000/- for the F.Y. 2002-03 relevant to A.Y. 2003-04 has escaped assessment. Issued Notice u/s 148 of the IT Act." 8. From the above reasons recorded by AO, it is crystal clear that the AO re-opened the assessment on the basis of information of other persons because he himself admitted that it came to his knowledge that the persons from whom the amount was received ....

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....stigation Wing and on that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account by way of above accommodation entries."The above conclusion is unhelpful in understanding whether the AO applied his mind to the materials that he talks about particularly since he did not describe what those materials were. Once the date on which the so called accommodation entries were provided is known, it would not have been difficult for the AO, if he had in fact undertaken the exercise, to make a reference to the manner in which those very entries were provided in the accounts of the Assessee, which must have been tendered along with the return, which was filed on 14th November, 2004 and was processed u....