TaxTMI 
TaxTMI 
2016 (6) TMI 839
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....considering, much less discussing, the submissions made in writing by the assessee in support of grounds no. 1, 2 and 7 raised before the CIT(A). 2. That the learned CIT(A) erred in law in upholding the validity of initiation of proceedings u/s. 147 of the Income Tax Act, 1961 (hereinafter referred to as the Act') as the reasons recorded by the AO did not lead to any belief that the assessee's income had escaped assessment. 3. That the learned CIT(A) erred in upholding the validity of a vague and stereotyped notice u/s. 148 of the Act, which manifestly showed non application of mind. 4. That the learned CIT(A) erred in law in confirming the addition made By the AO to t e tune of Rs. 2,00,000/- to the retur....
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.... order dated 14.11.2008, Assessee filed an Appeal before the Ld. CIT(A), who vide impugned order dated 31.10.2012 dismissed the appeal of the assessee. 4.1 Aggrieved by the impugned order dated 31.10.2012, assessee filed the Appeal before the Tribunal. 5. Ld. Counsel of the assessee has submitted that notice u/s. 148 has been issued in a mechanical manner on the basis of vague information received from DIT (Inv.) and also stated that the reasons recorded by the AO did not lead to any belief that the assessee's income had escaped assessment. He stated that the lower authorities has wrongly issued the notice u/s. 148 which manifestly showed non-application of mind. He further stated that the AO has simply filled up a proforma mentioning....
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....ent within the meaning of Section 147 of the I.T. Act, 1961." 7.1 On perusal of the aforesaid reasons indicates that notice uls 148 has been issued in a mechanical manner on the basis of vague information from Directorate of Inspection (Inv.). The AO did not dwell upon the veracity and the basis of information received. He has not mentioned any material which has led him to believe that the amount deposited in the bank account represented accommodation entry which has escaped assessment. He has simply filled up a proforma mentioning the information received. Therefore, the notice u/s. 148 is patently illegal. I also note that the facts and circumstances of the present case are similar and identical to that of the case in the Signature Ho....
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....cogency in the assessee's submission that the present case is squarely covered by the Order of the Hon'ble Delhi High Court dated 21.7.2011 passed in the case of Signature Hotels P. Ltd. vs. Income Tax Officer [2011] 338 ITR 0051, wherein the Hon'ble Court has held as under:- "Held, allowing the petition, that the reassessment proceeding were initiated on the basis of information received from the Director of Income Tax (Investigation) that the petitioner had introduced money amounting to Rs. 5 lacs during the financial year 2002-03 as stated in the Annexure. According to the information, the amount received from a company, S, was nothing but an accommodation entry and the assesee was the beneficiary. The reasons did not satisfy th....