TaxTMI 
TaxTMI 
TaxTMI 
2016 (6) TMI 214
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....e 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 justified in upholding the addition of Rs. 11,00,000/- under sction ....
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....ncome 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 entries. The AO made the addition of Rs. 11,00,000/-. 4. Being aggrieved the assessee carried the m....
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....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 basis of which the assessment was reopened, therefore, the ld. CIT(A) rightly upheld the action of the AO....
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....ATEHP 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 were entry operator and have provided entries to the assessee, after receiving amount in cash from the assessee. However, nothing was brought on recor....
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....tion 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 under Section 143(3) of the Act. Without forming a prima facie opinion, on the basis of such material, it was not possible for the AO to have simply concluded: ....