AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2015 (12) TMI 1657
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....cer failed to verify the veracity of the information before recording the so called reasons as held by the Delhi High Court in various cases. Mere receipt of information from (Inv) wing does not confer power on Assessing Officer to initiate proceedings u/s Assessing Officer. The CIT(A) grossly erred in law in ignoring the binding decisions of the high court relied upon by the appellant while upholding the validity of such proceedings. 2. That reassessment proceedings initiated u/s 148 are void ab-initio since the reasons recorded are vague without reference to any material on record. There is no nexus or live link between the information/material and the formation of belief that there is escapement of income for the year under cons....
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...., the addition could not be legally made. 7. The appellant craves to add or amend the grounds of appeal if required." 2. The brief facts of the case as recorded by the authorities below are as under: The assessee filed its return of income on 12/10/2010 declaring a loss of Rs. 98,563/-. The ld. Assessing Officer processed the return u/s 143(1) of the Act. He received certain information regarding accommodation entries provided by Shri Surendra Kumar Jain Group to various beneficiary companies from the office of DIT. The relevant extract pertaining to the assessee herein, as established by the search/survey/investigation conducted by the investigation wing, Delhi containing the details of amounts received by the assessee is as....
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....rovider. It is also observed that the assessee vide his letter dated 27/12/2013 had submitted all the details regarding allotment of shares to the applicant M/s Victory Software P. Ltd. The ld. Assessing Officer made addition of Rs. 10 lakhs as undisclosed income u/s 68 of the Act. 3. Aggrieved by the order of the ld. Assessing Officer the assessee preferred an appeal to the ld. CIT(A). 3.3. Before the ld. CIT(A) the assessee submitted various details regarding the share application money received from the parties being Gunpati Fincap Services Pvt. Ltd. and Victory Software Pvt. Ltd. amounting to Rs. 15 lakhs and 10 lakhs respectively. The assessee submitted that all the relevant documents relating to the parties, which could prove th....
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....-10 relevant to A.Y. 2010- 11, from Shri Surendra Kumar Jain group cases, who is entry provider. 2. In view of above, I have reason to believe that income chargeable to tax amounting to Rs. 10,00,000/- and any other income which subsequently comes to notice has escaped assessment for A.Y. 2010-11 within the meaning of section 147 of the Income Tax Act. Accordingly, a notice u/s 148 is being issued for the A.Y. 2010-11." 4.4. A perusal of the reasons recorded shows that the reassessment proceedings have been initiated on the belief that the assessee has obtained accommodation entry of Rs. 10 lakh from Shri Surendra Kumar Jain Group of cases, who is an entry operator. The ld. AR contended before us that the ld. Assessing Officer h....
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....d by the assessee. On personal verification and local enquiries made by the ITI it was reported by him that "no such company is operating/existing at the given address in the name of M/s Victory Software P. Ltd." Neither anybody on the given address knew about the existence of this applicant company nor had any knowledge as to where do they have their offices. 4.6. The ld. DR submitted that the assessee has not discharged its onus of establishing the genuineness of the transaction so claimed as share application money from M/s Victory Software Pvt. Ltd. 13. We have heard the arguments by both the parties. It is observed that the assessee has not obtained any share application money from the alleged Shri S.K. Jain Group. The ld. Assess....
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....on'ble High Court held that from the reasons recorded by the Assessing Officer it does not appear that the Assessing Officer has applied his mind to the information and has independently arrived at a belief on the basis of material which he had before him that the income had escaped assessment. 4.9. In the facts of the present case, the assessee had furnished the names and all the relevant details of the companies, with which it had entered into transaction, and that the Assessing Officer was made aware of the situation. We observe from the records placed before us that the Assessing Officer has not disputed the bank accounts and the payments that were made to the assessee by the applicant companies. Nowhere in the assessment order the l....