2017 (9) TMI 384

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....hearing. 4. R.P. Foam Home Private Limited has filed this petition under Article 226 of the Constitution of India seeking the quashing of a notice dated 31st March 2017 issued by the Income Tax Officer, Ward 20 (3), New Delhi (hereinafter referred to as the Assessing Officer - AO) under Section 148 of the Income Tax Act, 1961 ('the Act') seeking to reopen the assessment for the Assessment Year ('AY') 2010-11 on the ground that income escaped assessment. The order dated 26th July 2017 passed by the AO rejecting the Petitioner's objections to the reopening of the assessment is also challenged in this petition. 5. The Petitioner filed its return of income for AY 2010-11 declaring an income of Rs. 19,57,290. The return was processed under Sec....

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....asons for initiating proceedings under Section 147 of the Act. The AO did not himself have the copies of the statements made by Kishori Sharan Goyal or the bank account statement of M/s. JMD International. In the reasons the AO reproduced what was contained in the letter of the DDIT (Inv.). The relevant portion of the said reasons recorded, and a copy which was provided to the Petitioner, reads as under: "In this case, return has been filed showing income of Rs. 19,57,290 ` which was processed under Section 143 (1) of the IT Act. On verification from ITD system, no scrutiny assessment under Section 143 (3) was completed in this case. In this case, information has been received from DDIT (Inv)-III, Gurgaon vide his office letter No. DDIT (....

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....00,000 29/03/2010 2. JMD International 43,00,000 30/03/2010 3. JMD International 43,00,000 30/03/2010 4. JMD International 20,00,000 31/03/2010   Total 1,38,00,000     In view of above facts, it is clear that M/s. R.P. Foam Home (P) Ltd had taken non-genuine accommodation entries from one of the dummy companies namely JMD International through its bank account amounting to Rs. 1,38,00,000 during FY 2009-10 relevant to AY 2010-11 which requires scrutiny. In view of above facts, I have reason to believe that income to the tune of Rs. 1,38,00,000 has escaped assessment for AY 2010-11. Hence, if approved, sanction may be accorded in terms of provisions of Section 151 (2) for issue of notice under Section 148 f....

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....dealt with the objections at all. It merely reiterates that the DDIT (Investigation) had intimated that the Petitioner had taken non-genuine accommodation entries from one of the dummy companies including M/s. JMD International. It then sets out Section 147 of the Act. The order proceeds to assert that the AO has in the reasons recorded, formed his opinion in writing and that "this belief has been made after due diligence and considering the fresh material, evidences and facts available on the record." There is no basis for this bald assertion considering that the only material available with the AO was the letter sent by the DDIT (Inv). The order then sets out the summary of certain decisions and then simply concludes that "keeping in view....