TaxTMI 
TaxTMI 
2018 (2) TMI 517
X X X X Extracts X X X X
X X X X Extracts X X X X
....rred to as 'the Act') whereby its assessment for assessment year 2010-11 is sought to be reopened. 2. The petitioner company filed its return of income for the assessment year 2010-11 on 28.9.2010 declaring total income at Rs. 2,55,90,900/-, which came to be accepted under section 143(1) of the Act. Subsequently, search action was carried out under section 132 of the Act and assessment came to be framed on 28.3.2016 under section 153A read with section 143(3) of the Act at Rs. 2,55,90,900/-. Subsequently, the respondent issued the impugned notice under section 148 of the Act seeking to reopen the assessment of the petitioner for the year 2010-11. Subsequently, the reasons for reopening the assessment also came to be furnished to the peti....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... reasons recorded, the respondent could not have formed the belief that the income chargeable to tax had escaped assessment, inasmuch as, as per the version of the respondent himself there are two transactions of receipt of money and payment of money, in which case there cannot be any escapement of income. It was submitted that in fact, the petitioner has made profit on the very transaction of trading gold and the income therefrom has been offered for taxation. It was further submitted that in the present case, purchase and sale are not bogus and all taxes have been duly paid and re-assessment is sought to be made on the basis of misconception of facts. It was submitted that merely stating that income has escaped assessment is not sufficien....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hem i.e. high value transactions were credited through RTGS/ Clearing/ Cash/ Transfer from various accounts which was immediately withdrawn by cash/ multiple transfers were made to other accounts and the funds were moved out through clearing or foreign outward remittances. 2.During the course of recording statement u/s 131 of Shri Anil Kumar Jain on 13.02.2013 and Shri Pravin Kumar Jain on 18.02.2013, they admitted to carrying out business of giving accommodation entries in the name of various entities. On verification of the details of various entities provided by them, it was revealed that one of the entity was M/s Shreeji Trading Company, 10-Shaligram, Bhupendra Road, Opp. Diwanpara, Police Chowki, Rajkot, Gujarat - 360001 which....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssessment. Accordingly, the learned counsel has produced the record of the case before this court. A perusal of the record reveals that the information received by the Assessing Officer was to the following effect. "DVIP (Investigation), Unit-6(4), Mumbai informed that account of M/s Shriji Trading Company was linked with M/s Vishnu Trading and Jay Corporation and provided certain details of all the accounts linked with Jay Corporation and Vishnu Trading. In page-6 of the statement of Shri Pravinkumar Jain recorded on 18.2.2013, in response to question No.23, Shri Pravinkumar Jain has accepted that he was having financial transactions with M/s Jay Corporation, which is a concern operated by a cheque discounter and he used ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....TGS through M/s Jay Corporation. Thus, no nexus has been established between Shri Anil Kumar Jain and Shri Pravin Kumar Jain who had made the statements under section 131 of the Act and M/s Shreeji Trading Company. Thus, the reasons are based upon a factually incorrect premise that M/s Shreeji Trading Company was being handled by Shri Anil Kumar Jain and Shri Pravin Kumar Jain. Thus, the absence of any material on record to indicate any nexus between M/s Shreeji Trading Company and Shri Anil Kumar Jain and Shri Pravin Kumar Jain, erodes the very substratum for formation of belief that income has escaped assessment. Consequently, once there is no foundation for such belief, the reasons based thereupon have no legs to stand, hence, on the rea....