TaxTMI 
TaxTMI 
2017 (5) TMI 199
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.... the facts of the case and hence liable to be set aside. 2) That on the facts and in circumstances of the case and in law the ld. A.O. has erred in framing impugned assessment without assuming jurisdiction in law and without complying with the mandatory conditions as per section 147 to 153 of the Income Tax Act,1961. 3)That on the facts and in circumstances of the case and in law the ld. A.O. has erred in framing the impugned assessment without granting adequate opportunity of hearing to the assessee and without confronting the entire adverse material used against the assessee. 4)That on the facts and in circumstances of the case and in law the ld. A.O. has erred in making an unwarranted addition of Rs. 4,01,000/- u/s.68 of the inc....
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....them to the entry operations. Such a camouflaged transaction came to light during the course of survey in the case of M/s. Gurcharan Jewellers whose proprietor Shri Ashok Kumar Chauhan had admitted to have taken cheques under the garb of gifts after giving cash to the entry operator. Probe was initiated into the accounts which were used to provide these entries. These investigations led to revealing of many more bank accounts which were being used by the entry operators for the purpose of giving accommodation entries. 2 Extensive enquiries were made into numerous such bank accounts the account holders, the persons operating these accounts and the persons for whom such account holders were working. These enquiries revealed inter alia the ....
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....ar books of account in the form of gift, share application money, loan etc through banking channels. 2.3 The operators gave the account holders amounts ranging from Rs. 1000 to 2000 per month. These account holders were masons, plumbers, electricians, peons, drivers etc, whose earnings are not sufficient for a living. They earned normally 3 to 5 thousands per month from their normal work and by working for the entry operators earned extra income of 2 to 4 thousands per month. Their signatures were taken on blank gift deeds, cheque books, share application money etc. In fact, these persons signed all types of papers they were asked to sign. They were made directors of companies, partners of firms and proprietors of different concerns sole....
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....was argued by the learned counsel for the assessee that the Assessing Officer reopened the case only on the basis of the investigation record and no independent application of mind was made. It was mentioned that there was statement on oath and letters of admission that these transactions are non genuine. It was argued that there was no statement on oath on record and no letter of admission has been placed on record. Therefore, the learned counsel for the assessee argued that the assessment /re-assessment made is bad in law and needs to be quashed. 6. Learned DR, on the other hand, relied upon the orders of both the authorities below. 7. I have heard the rival contentions and perused the facts of the case. There is no dispute to the f....
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....nter and did not apply his own mind to the information and examine the basis and material of the information. There was no dispute that the company, S, had a paid up capital of Rs. 90 lakhs and was incorporated in September, 2001. Thus, it could not be held to be a fictitious person. The reassessment proceedings were not valid and were liable to be quashed." 7.1 Reliance is also placed upon the decision of Hon'ble Delhi High Court in the case of Sarthak Securities Co. P. Ltd. Vs. ITO, reported in (2010) 329 ITR 110 (Del). 8. In the circumstances and facts of the present case and the decision relied upon hereinabove the AO does not acquire jurisdiction to assess or reassess the matter in the present case and accordingly the assessment ....