2019 (1) TMI 1483

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....on Company India Private Limited ("ARCIL" for short) and is engaged in the business of securitisation and asset reconstruction and also acts as trustees for the nonperforming financial assets acquired from the various banks and financial institutions. 4. For the assessment year 2011-12, the petitioner had filed return of income on 30th September, 2011 declaring income of Rs. 79.23 crores. The return was taken in scrutiny by the Assessing Officer who passed the order of assessment under Section 143(3) of the Income Tax Act ("the Act" for short) on 25th March, 2014. To reopen such assessment the Assessing Officer issued the impugned notice which as can be seen was done beyond the period of four years from the end of assessment year. In ....

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....r 2009. Against the same, M/s Avance Technologies Ltd had paid Rs. 2.70 Cr to M/s Asset Reconstruction Company India Ltd. However, as M/s Avance Technologies Ltd was engaged in providing bogus accommodation entries to various parties in connivance with Shri Shirish C Shah, the claim of M/s Asset Reconstruction Company India Ltd. may be investigated. 4. In view of the above and based on the material evidence available on record, prima facie, it is seen that the assessee, M/s Asset Reconstruction Company India Ltd has had dealings with Avance Technologies Ltd., which was indulged in providing bogus accommodation entries and that income chargeable to tax to the tune of Rs. 2.70 Crore has escaped assessment in F.Y. 2010-11 i.e. A.Y. 2011-12.....

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....o transactions with one M/s Avance Technologies Limited ("Avance" for short). ARCIL had purchased Non-Performing Asset (NPA ) of said Avance from Allahabad Bank in the year 2009. Against this, Avance had paid a sum of Rs. 2.70 crores to ARCIL. According to the information of the Assessing Officer, Avance was engaged in providing bogus accommodation entries at the instance of said S.C. Shah. On the basis of such information, the Assessing Officer was prima facie of the view that the assessee i.e. ARCIL has dealing with Avance which in turn has indulged in dealing with various accommodation entries and therefore, income chargeable to tax of Rs. 2.70 crores had escaped assessment. 7. In our opinion, the very premise of Assessing Officer to ....