TaxTMI 
TaxTMI 
2018 (5) TMI 1540
X X X X Extracts X X X X
X X X X Extracts X X X X
....ee with any adverse material in possession of the department against the assessee. 03. That the Ld. Commissioner of Income Tax (Appeals)-I, Agra has erred in law and on facts in not considering the fact that the assessment completed u/s 143(3) of the Income Tax Act, 1961 is invalid( without issuing notice u/s. 143(2) of the Income Tax Act, 1961. 04. That the Learned Commissioner of Income Tax (Appeals) - 1, Agra has erred in law and on facts in confirming addition of Rs. 2,00,000/- made u/s 68 of the Income Tax Act, 1961 on account of alleged gift taken from M/S Garg Enterprises Trust when neither such amount was taken from the aforementioned person nor such amount was found credited in the books of accounts of the assessee." 2. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... gives gifts to other persons. There is no relationship between doner and donees. Trust do not conducted any business activities and are only lender. Hence, the trust are given gift to doner is bogus gift and arranged gift. Since the gift of Rs,2,00,000/- as per details given above have been found as bogus the entire amount of gift claimed to have been received by the assessee from the above party is his own income from undisclosed sources. Hence I have reason to believe that the above income of Rs,2,00,000 has escaped assessment within the meaning of sec.147 of the I.T. Act 1961." 5. The ld. CIT(A) decided the assessee's challenge to the reopening of the completed assessment, holding as follows: "6. Grounds no. 3 to 6 relate to the reo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....igation Wing of the Department, i.e., just on borrowed satisfaction. Reliance has been place on 'Principal CIT vs. Meenakshi Overseas (P) Ltd.', 154 DTR 100 (Del), 'Mayank Mittal vs. ITO', ITA No.276/Agra/2016, A.Y. 2004-05, order dated 26.04.2018 (ITAT Agra). 7. The learned DR, on the other hand, has stated that the information received by the AO from the Investigation Wing of the Department was new and fresh evidence, on which, the AO could have drawn an inference and could have formed a prima facie opinion whether or not to initiate reassessment proceedings. Reliance has been placed on "CIT vs. India Terminal Connector System Ltd.", order dated 21.03.2012, passed by the Hon'ble Delhi High Court in ITA No.643/2011 (copy filed). Reliance ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ny business but receipt of large money in the hand of trust by the way of gift business profit, donation etc. The trust has received gift in cash from other trust end other trust gives gifts to other persons. There is no relationship between doner and donees. Trust do not conducted any business activities and are only lender. Hence, the trust are given gift to doner is bogus gift and arranged gift'. 10. Heard. In 'Meenakshi Overseas' (supra), under similar facts and circumstances, relying on 'Signature Hotels (P) Ltd. Vs. ITO', 338 ITR 51 (Del), it has been held that the reasons must be self-evident and they must speak for themselves; that the tangible material which forms the basis for the belief that income has escaped assessment must be....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Civil Writ Petition filed by the assessee was decided by the Hon'ble High Court on merits, having taken into consideration the investigation report of the Investigation Wing of the Department, as conveyed to the AO, the assessee's record, the Department's counter-affidavit (alongwith its annexures) to the Writ Petition and the rejoinder affidavit filed by the assessee. It was held that from the findings of the Investigation Wing and as per the record, the AO of the assessee (Respondent No.1 in the Writ Petition) had reason to believe that the assessee had diverted and, thus, concealed his income by disclosing it to be sale proceeds of shares, which was not correct, as no real transaction of shares had ever taken place. It was held that in v....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d to prove and establish that the assessee had been unable to disclose fully and truly all material facts at the time of original assessment. The Tribunal had quashed the re-assessment proceedings on the basis that the original assessment was completed u/s. 143(3) of the IT Act and the share application money was duly reflected. 17. There is, in fact, no dispute, as none can be, to the proposition that information received from the Investigation Wing of the Department is information on the basis of which, the AO can initiate reassessment proceedings. The issue actually is as to whether the AO applied his mind to the information received and if the reasons recorded evince such application of mind by showing a direct nexus or live link betwe....