TaxTMI 
TaxTMI 
2017 (2) TMI 727
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....n law in rejecting the contention of the assessee that the reassessment proceedings initiated by the learned A.O. are bad In the eye of law as the reasons recorded for the issue of notice under Section 148 are bad in the eye of law and are vague. 4. On the facts and circumstances of the case, learned CIT (A) has erred both on facts and in law in confirming the addition of Rs. 11,16,500/- made by the AO on account of share capital money under section 68 of the Act. 5 (i) On the facts and circumstances of the case, the learned CIT (A) has erred both on facts and in law in confirming the addition of Rs. 11 ,00,000/- made by the AO uls 68 of the Act. (ii) That the addition was made despite the assessee bringing all material & evidences to prove the identity & creditworthiness of the share applicants as well as the genuineness of the transaction. (iii) That the addition was made without pointing out any error or defect in the evidences filed by the assessee. (iv) That the addition was made without bringing, any adverse material on record. 6 (i) On the facts and circumstances of the case, the Ld. CIT (A) has erred both on facts and in....
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..... Against the Order of the Ld. AO, assessee appealed before the Ld. CIT(A), who vide impugned order dated 1.7.2016 has dismissed the appeal of the assesseee and affirmed the action of the AO on the legal issue i.e. reopening of the case u/s. 147/148 of the I.T. Act, 1961 as well as on merits. 4. Aggrieved with the aforesaid order of the Ld. CIT(A), Assessee is in appeal before the Tribunal. 5. Ld. Counsel of the assessee has filed the Paper Book containing pages 1 to 224 attaching therewith the copy of acknowledgement of return of income; copy of computation of income; Copy of Audit Report, Balance Sheet and P&L Account, copy of Notice u/s. 148 dated 27.3.2014, copy of reply dated 15.4.2014 alongwith copy of ITR and copy of bank statements; copy of notice u/s. 142(1) dated 9.7.2014; copy of reply dated 21.7.2014 alongwith various details; copy of reply dated 28.7.2014 alongwith copy of challan of Min. of company Affairs and copy of Form 2; copy of reply dated 8.8.2014; copy of reply dated 25.8.2014; copy of reply dated 3.9.2014; copy of reply dated 8.9.2014; copy of written submissions filed before CIT(A) on 28.9.2015; copy of continued submissions-I filed before CIT(A) on 16....
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....ecorded by the AO before issue of Notice to the Assessee u/s. 148 of the I.T. Act, 1961 which is reproduced hereunder:- 'The assessee filed return of income for the A Y 2007-08 on 14.11.2007 declaring income of Rs. 4,82,111/-. The return was processed u/s 143(1) on 24.10.2008. DIT(lnv.) Unit-IV, New Delhi during the course of investigation in tne case of Sh. Tarun Goyal created a number of private limited companies and firms for providing accommodation entries. The directors of these companies were his employees who worked in his office as peons, receptionists etc. The documents were got signed from these employees. A number of Bank Accounts in various banks were opened in the names of these companies and his employees, in which huge cash deposits were made. Later cheques were issue to various beneficiaries, disguising the whole transaction as genuine. During the course of investigation it was established that Sh. Tarun Goyal has floated about 90 companies for the purpose of providing accommodation entries. The companies floated by Sh. Tarun Goyal are not carrying out any genuine activity and are merely being used to provide accommodation entries. During the c....
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.... Court has adjudicated the issue as under:- "12. In the present case, after setting out four entries, stated to have been received by the Assessee on a single date i.e. 10th February 2003, from four entities which were termed as accommodation entries, which information was given to him by the Directorate of Investigation, the AO stated: "I have also perused various materials and report from Investigation 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 under Section 143(3) of the Act. Without for....