2017 (4) TMI 706

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....e case in brief are that the assessee filed the return of income on 01.12.2008 declaring an income of Rs. 445/-. Thereafter, the AO initiated the assessment proceedings by issuing the notice u/s 148 of the Act on 30.03.2010 on the basis of information received from DIT(Inv.), New Delhi that the assessee had received accommodation entry of Rs. 5,00,000/- during the year from M/s DU Securities (P) Ltd. and the genuineness of the transaction was required to be examined. The AO made the addition of Rs. 5,00,000/- and framed the assessment at an income of Rs. 5,00,445/-. 4. Being aggrieved the assessee carried the matter to the ld. CIT(A) and challenged the validity of the reassessment framed by the AO. The ld. CIT(A) however, did not find me....

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....td. Vs DCIT in ITA No. 1596/Del/2014 order dated 12.04.2016 • Ø Pr. CIT Vs G & G Pharma India Ltd. reported at 384 ITR 147 6. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case, from the copy of the reasons recorded placed at page no. 12, it is noticed that the AO while reopening the assessment recorded the reasons in the following manner: "An information from the office of the DIT(Inv.)-1, New Delhi has been received that the assessee M/s Shri Salasar Polycot Pvt. Ltd. has received an accommodation entry of Rs. 5 lacs from M/s DU Securities Pvt. Ltd. into its Bank account during the financial year 2007-08 relevant to assess....

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....Assessing Officer, to the materials produced prior to reopening the assessment, to conclude that he has reason to believe that income has escaped assessment. Unless that basic jurisdictional requirement is satisfied a post mortem exercise of analysing materials produced subsequent to the reopening will not make an inherently defective reassessment order valid." It has further been held as under: "Without forming a prima facie opinion, on the basis of such material, it was not possible for him to have simply concluded that it was evident that the assessee company has introduced its own unaccounted money in its bank by way of accommodation entries. The basic jurisdictional requirement was application of mind by the Assessing Officer to the....