TaxTMI 
TaxTMI 
2016 (8) TMI 1406
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..... 41,40,000/- has been rightly made by the AO u/s. 68. c) Holding that the amount of Rs. 41,40,000/- is the assessee's own money / fund and liable to be included in the total income and taxed. d) Holding that the assessee has failed to prove the identity, creditworthiness and genuineness of the transactions with the following persons credit in the a/c books. 1. Rashmi Garg 40,000/- 2. Karan Kumar Garg 50,000/- 3. Tejesvie Investment Pvt. Ltd. 7,00,000/- 4. Puri Financial Services Pvt. Ltd. 10,00,000 5. VDM Marketing Pvt. Ltd. 5,00,000/- 6. Dhanuk Securities Pvt. Ltd. 5,00,000/- 7. Dhanuk Commercial Pvt. Ltd. 6,50,000/- 8. India Dot. Com Pvt. Ltd. 5,00,000/- 9. Renu Kansal 1,00,000/- 10. Rama Kansal 1,00,000/- ....
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....irmed the action of the AO on the legal issue i.e. reopening of the case u/s. 147/148 of the I.T. Act, 1961. 4. Aggrieved with the aforesaid order of the Ld. CIT(A), Assessee is in appeal before the Tribunal. 5. Ld. Counsel of the assessee has filed two Paper Books one containing pages 1 to 199 attaching therewith the assessment and appellate proceedings documents and the second Paper Book is containing pages 1 to 58 having the copies of the various decision of the ITAT and the Hon'ble High Courts and the Written Submission etc. He stated that Ld. CIT(A) has erred in confirming the action of the AO in assuming jurisdiction u/s. 147 and that too without complying with the mandatory conditions as prescribed under section 147 to 151 of the I....
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....reassessment proceedings of the AO may be quashed by accepting the Appeal filed by the Assessee. 6. On the contrary, Ld. DR relied upon the order passed by the authorities below and stated that the AO has properly recorded the for reopening by due application of mind, hence, the appeal of the Assessee may be dismissed. 7. I have heard both the parties and perused the relevant records available with us, especially the orders of the revenue authorities and the case law cited by the assessee's counsel on the issue in dispute. In my view, it is very much necessary to reproduce the reasons recorded by the AO before issue of Notice to the Assessee u/s. 148 of the I.T. Act, 1961 which is reproduced hereunder:- "DIT(Inv.) Unit-IV, during the co....
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.... 7,00,000 In view of the report received from the DITs(Inv.) New Delhi, and in view of the facts narrated above it is clear that the assessee had provided its Own cash to arrange a credit entry from the Company controlled by Sh. Tarun Coya1. The cash provided by the assessee represents its own income from undisclosed Sources. Further, the assessee had paid commission for such arrangement, which in such cases is at 1%. Therefore, the assessee had incurred an expenditure of Rs. 7,OOO/- for such arrangement which is met out of its wwn income from undisclosed sources. Thus, the assessee has not disclosed fully and truly all material facts necessary for its assessment for that assessment year. I have therefore, reason to believe that the sum ....
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....ious materials and report from Investigation Wing and on that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account by way of above accommodation entries." The above conclusion is unhelpful in understanding whether the AO applied his mind to the materials that he talks about particularly since he did not describe what those materials were. Once the date on which the so called accommodation entries were provided is known, it would not have been difficult for the AO, if he had in fact undertaken the exercise, to make a reference to the manner in which those very entries were provided in the accounts of the Assessee, which must have been tendered along with the return, which was filed on 14t....