TaxTMI 
TaxTMI 
2017 (3) TMI 193
X X X X Extracts X X X X
X X X X Extracts X X X X
....143(3)/147 of the Act without satisfying the statutory pre-conditions for initiation of the proceedings and, completion of assessment under the Act. 3. That the learned Commissioner of Income Tax (Appeals) has further erred in law and on facts in sustaining the initiation of proceedings uls 147 of the Act on the basis of information received from DIT (investigation) mechanically and without independent application of mind. 3.1 That further, the reasons recorded were mere reasons to suspect and were just to make fishing and roving enquiries, as no independent enquiry was conducted by the assessing officer before issuing such notice under section 148 and as such the proceeding initiated under section 148 was a mere pretence. 4 That the learned Commissioner of Income Tax (Appeals) has further erred both in law and on facts in sustaining an addition of Rs. 45,00,000/- as alleged accommodation entry received from Sh. S.K. Gupta, and held to be unexplained cash credit uls 68 of the Act. 4.1 That in doing so, the learned Commissioner of Income Tax (Appeals) has completely ignored and overlooked all the necessary documents which were filed before h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n sustaining additions in the hands of assessee company by merely relying on the order of assessment passed by learned AO and not giving any independent finding of his own and as such the appeal so decided by learned CIT (A) is with total non application of mind and also without giving any fair and proper opportunity of being heard to the appellant company., thereby, violating the principles of natural justice. 2. The brief facts of the case are that the assessee originally filed the return on 21.11.2005 declaring loss of Rs. 15,018/-. The return was processed u/s 143(1) of the I.T. Act, 1961. In this case information was received from the Directorate of Income Tax (Investigation) that the assessee company was a beneficiary of accommodation entries of Rs. 45 lacs through one Sh. D.N. Taneja. Sh. Taneja in his statement recorded on 07.01.2009 offered the transaction done Mr. S.K. Gupta company M/s Passion Chits P ltd., who is a known entry operator, who had admitted before the investigation wing that he was operating as an entry operator & various companies floated by him were also used for this purpose. On the basis of this information, proceedings u/s 147 of the I.T. Act were i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of reasons recorded provided by AO; copy of reply to AO dated 11.5.2012 containing objections to reopening of assessment; copy of documentary evidences filed before AO in order to establish the sale of share holding in various companies to M/s Passion Chits Pvt. Ltd; and copy of written submission filed before CIT(A). He stated that Ld. CIT(A) has erred in sustaining the initiation of the proceedings under section 147 of the I.T. Act and, further completion of assessment under section 143(3)/147 of the Act without satisfying the statutory pre-conditions for initiation of the proceedings and, completion of assessment under the Act. He further stated that Ld. CIT(A) also erred in sustaining the initiation of proceedings u/s. 147 of the I.T. Act on the basis of information received from DIT(Inv.) mechanically and without independent application of mind. He further stated that the reasons recorded were mere reasons to suspect and were just to make fishing and roving enquiries, as no independent enquiry was conducted by the AO before issuing such notice u/s. 148 of the I.T. Act and as such the proceeding initiated under section 148 was a mere pretence. To support....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... Ltd. having PAN, AAACN 24910 . During the course of search and seizure proceedings in the Taneja Group of cases, the main controlling person of the group Mr. D.N. Taneja in his statement recorded on 07-01-2009 offered the entire (transactions) done with Mr. S.K. Gupta's companies amounting to Rs. 6.23 crores as additional income the respective financial years and in respective companies of his group (there are 15 such companies includes M/s Neptune Promoters Pvt. Ltd) in which accommodation entries of Rs. 45 lakhs for A.Y. 2005-06 have been offered as additional income by Mr D.N. Taneja in-his above mentioned statement tabulated as below. S. No. Date Name Amount Name of the other company 1 09.7.2004 Neptune Promoters Pvt. Ltd. 20,000,00 Passion Chits 2 09.7.2004 Neptune Promoters Pvt. Ltd. 10,000,00 Passion Chits 3 09.7.2004 Neptune Promoters Pvt. Ltd. 15,000,00 Passion Chits In statement of Mr S.K. Gupta reported on 05.01.2009 during the course of survey u/s. 133A of the Income tax Act, in the case of M/s Omni Farms Pvt. Ltd. in which he has admitted regarding providing of accommoda....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mmodation 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 forming a prima facie opinion, on the basis of such material, it was not possible for the AO to have simply concluded: "it is evident that the assessee company has introduced its own unaccounted money in its bank by way of accommodation entries"....