TaxTMI 
TaxTMI 
2016 (3) TMI 1274
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the case, CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the reassessment proceedings initiated by the ld. Assessing Officer are bad in the eye of law as the reasons recorded for the issue of notice u/s 148 are bad in the eye of law and are contrary to the facts. (ii) On the facts and circumstances of the case, CIT(A) has erred both on facts and in law in rejecting the contention of the assessee that the reassessment order passed by the Assessing Officer is bad and liable to be quashed as the same has been reopened on the basis of the reasons which are vague and has been recorded without application of mind on the part of the Assessing Officer. 4. On the facts and circumstances of the case, the ld. CIT(A) has erred both on facts and in law in confirming the rejecting of the books of accounts of the assessee by the Assessing Officer, despite the fact that the assessee has been maintaining proper books of accounts as per law. 5. On the facts and circumstances of the case, the ld. CIT(A) has erred both on facts and in law in confirming the addition of an amount of Rs. 8,70,461/- on account of bogus purchases. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al justice. 12. The appellant craves leave to add, amend or alter any of the grounds of appeal." 2. Brief facts of the case as recorded by the ld. Assessing Officer are as under: The assessee had not filed its return of income for the year under consideration. The assessment was reopened on an information received from the ACIT, Central Circle 10, Jhandelwalan Extn., on the allegation that the assessee had made bogus purchases. The assessment was completed by the ld. Assessing Officer by making an addition of Rs. 43,52,304/- treating the entire purchases made by the assessee from M/s Shree Bankey Bihari Trading Company, M/s. Om Agencies and M/s Shree Syam Trading Company to be accommodation entries. 3. Aggrieved by the order of the ld. Assessing Officer, the assessee went into appeal before the ld. CIT(A). The ld. CIT(A) upheld the validity of the reassessment but reduced the addition to 20% of the purchases being Rs. 8,70,461/-. 4. Aggrieved by the order of the ld. CIT(A) the assessee is in appeal before us now. 5. The grounds taken before us by the assessee, relates to the validity of the reassessment as well as the sustenance of the addition to an extent ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed by CIT, Central-II, New Delhi, there is a clear allegation that the persons mentioned therein have provided accommodation entries. Since the name of the assessee appears in the list of accommodation entries the assessing officer was justified and recording reasons and reopening the assessment. It was submitted that at the time of reopening of the assessment, only a prima facie view has to be taken and there need not be any conclusive evidences. The Ld. DR further submitted that name of the assessee was appearing in the list of the accommodation entries provided and hence assessing officer was well within his power to reopen the assessment. The Ld. NTR also submitted that CIT(A) was justified in rejecting this ground of the assessing. In support thereof the Ld. and D are placed reliance on the judgment of Hon'ble jurisdictional High Court in the case of CIT versus Nova Promoters & Finlease Pvt.Ltd., reported in_______________ 7. We have heard the rival submissions and carefully considered the documents placed on record. It is noted that the assessment has been reopened by the ld. Assessing Officer by recording the following reasons: "Reasons for the belief that the income h....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 6. The information of accommodation entry includes A.Y. 2006-07 also, which is a time baring year for taking action u/s 148. 7. This information is forwarded to you for early dissemination to various field offices in Delhi. On examining the list of accommodation entries provided by Shri Rakesh Gupta & Shri Vishesh Gupta and Shri Navneet Jain & Shri Vaibhav Jain pertaining to A.Y. 2006-07. It is noticed that the following accommodation entries have been taken by the assessee namely M/s Nayar Metal Company:- S.No. Accommodation entry provided by Name of party to whom Accommodation entry is provided Amount of Accommodation entry 1. Vishnu Trading Co. M/s. Nayar Metal Company Rs.17,79,173 2. Shree Bankey Bihari M/s. Nayar Metal Company Rs.13,77,212 3. Shree Shyam Trading M/s. Nayar Metal Company Rs.8,00,948 4. Om Agencies M/s. Nayar Metal Company Rs.3,94,979 Total amount of entries Rs. 43,52,304 Since Sh. Rakesh Gupta & Sh. Vishesh Gupta and Sh. Navneet Jain & Sh. Vaibhav Jain during the course of assessment proceedings u/s 153A of I.T. Act have admitted that they ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the income has escaped assessment in the case of M/s. Nayar Metal company and taking administrative approval from the Joint CIT, Range-39, New Delhi granted on 28. 03. 2013, the assessment of the assessee for assessment year 2006-07 was reopened as per section 147 of the IT act." 7.2. It is observed from the order passed by the assessing officer, whereby the assessing officer himself has stated that he was not having the copy of the statement and other information at the time of recording reasons, which was important for him to apply his mind, while forming belief of income escaping assessment. In this regard, the assessing officer himself records in paragraph 3 on page 5 of the assessment order, that post reopening of the assessment, he had conversations with the ACIT, Central Circle-10, New Delhi and has sent various letters dated 23.07. 2013 to 24.12.2013, asking for basic information which included copies of statement recorded regarding the alleged accommodation entries against the assessee. 7.3. The Ld. assessing officer in paragraph 4 further records that, he received the supporting documents wide letter dated 27. 12. 2013 from the office of ACIT, Central Circle-10, New....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at the validity of the initiation of the reassessment proceedings are to be judged with reference to material available with the assessing officer, at the time of issuance of notice under section 148. In the present case, it is very much evident from the assessment order itself that the assessing officer was having nothing except the list provided by the CIT Central-II, New Delhi. He was not having the copies of the statement, assessment orders and other details which could enable him to apply his mind and form a belief that income has escaped assessment. In fact these information was not there with the assessing officer till 27.12.2013. Thus in our view this is a clear case of total non-application of mind by the assessing officer. 7.6. We found the issue regarding the validity of the reassessment is duly covered by the decision of this Tribunal in the case of Unique Metal (supra), Shree Radheshyam & Company(supra), Punjab Metals(supra) and Krishan Lal Gambhir (supra), wherein the assessing officer had initiated similar proceedings by recording the same stereotype reasons and the party from whom the assessee therein, had made purchases, were also same, as in the case of the pre....