2016 (9) TMI 1284

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....e case, the learned CIT(A) has erred, both on facts and in law, in rejecting the contention of the assessee that proceedings initiated under Section 147, read with Section 148 are bad as the condition and procedure prescribed under the statute have not been complied with. 3(i) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in 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 contrary to the facts. (ii) On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and ....

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....F.No. CCIT/Delhi/Juris/CRPU/2007-08/10065 dated 05.12.2008 and further the same was forwarded by ITO, Ward-29(4) vide letter F.No.ITO/Ward 29(4)/DAO/CashDeposit/204/2011-12/609 dated 15.03.2012, it was found that Sh. Rahul Bhandari had made transaction of Rs. 14,67,400/- with Industrial Development Bank of India Ltd, MUM 100314 on 31.03.2006. For the above stated reasons to believe, the case of the assessee needs examination for reassessment, u/s 147 of, the Income Tax Act, 1961, as the above mentioned income of Rs. 14,67,400/- escaped assessment. Necessary approval in this regard may be allowed to reopen the case u/s147." 3. I observe that the AO's finding that an investment was made on 31.3.2006 is factually incorrect. I have,....

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....on 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". In the considered view of the Court, in light of the law explained with sufficient clarity by the Supreme Court in the de....