2016 (2) TMI 997

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....essee is a company and has filed its return of income on 28.9.2000 declaring income of Rs. 3,96,115/-. The assessments were reopened u/s 147 of the Act. The reopened assessments were completed u/s 143(3) of the Act on 26.12.2007 determining the total taxable income at Rs. 68,96,120/-. On appeal the First Appellate Authority granted relief by deleting the addition made u/s 68 of the Act. On the issue of reopening the Ld.CIT(A) held against the assessee. Aggrieved with the finding on merits the Revenue has filed an appeal and the assessee has filed a Cross Objection on the issue of reopening. 3. We have heard Shri Ved Jain, the Ld.Counsel for the assessee and Shri Manoj Chopra, Ld.Sr.D.R. on behalf of the Revenue. On a careful consideratio....

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....ries." 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: "it is e....

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....by order dt. 8th October, 2015 in ITA no.545/2015 (Pr.CIT vs.G&G Pharma India Ltd.) dealt with a similar instance of reopening of assessment by an AO based on the information received from DIT (Investigation) without making any effort to discuss the material on the basis of which he formed a prima facie opinion that income had escaped assessment. The Court held that the basic requirement of S.147 of the Act that AO should apply a mind in order to form reasons to believe that income had escaped assessment had not been fulfilled. 8. As far as the present case is concerned, the situation is no different. The ITAT was, in the circumstances, justified in holding the initiation of the reassessment proceedings was invalid." 6. A plain ....