TaxTMI 
TaxTMI 
2018 (5) TMI 1905
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.... (at the time of recording reasons) for his reason to believe that the income of the 'appellant' has escaped assessment. 2. BECAUSE the learned CIT(A) has failed to appreciate that the reassessment proceedings as initiated are wholly unsustainable in as much as the same have been initiated for collateral purpose i.e. to make roving and fishing enquiry, as there was no material on record to even prima-facie conclude that the income of the 'appellant' had escaped assessment. 3. BECAUSE without prejudice to the above and in the alternative, the learned CIT(A) has grossly erred both on fact and in law in upholding the addition made of Rs. 2,21,895/-. 4. BECAUSE, the learned CIT(A) has erred in confirming addition of Rs. 3,500/- towards....
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....f M/s. Ayushi Stok Brokers (P) Ltd., Sanjay Place, Agra is to take cash from the beneficiary (assessee), deposit the same in one or more of various accounts maintained or controlled by one Sh. R.K. Agarwal, then the money is transferred to the account of M/s. Ayushi Stock Broker (P) Ltd. And thereafter the beneficiary (assessee) was issued cheques/drafts along with bills of share purchase/sales after charging commission/premium from him. Thus, bogus entries were provided to the beneficiaries by showing them transaction made by them in purchase and sale of shares of certain companies, gifts etc., which in fact never took place. The assessee is also one of the beneficiaries figuring in the list supplied as sated above and an amount of Rs. ....
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....n attracted to the CIT(A)'s order dated 31.05.2010, for A.Y. 2001-02, in the assessee's case, on the same issue. A copy thereof has been placed at APB 52 to 61. It has been pointed out, that as available at APB-52, para 3, the reasons are exactly the same as those recorded for the year under consideration. It has been stated that in para 14 (APB 60-61), it has been found that there was no material with the AO to form any reason to believe escapement of income and that it was so, that the addition made as income from other sources, was deleted. It has further been submitted that in the reasons recorded for the year under consideration, the nature of the transactions allegedly entered into by the assessee, have not been specified and that the....
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....The CIT-II', ITA 178 of 2016, GA 997 of 2016 (Calcutta High Court). 6. 'Anil Kumar Singhal vs. ITO', IT Appeal Nos. 408 & 413/Agr/2012, ITAT Agra. 7. 'Acorus Unitech Wireless Pvt. Ltd. Vs. ACIT', Judgment dated 28.02.2014, passed by the Hon'ble Delhi High Court in WP (C) 1957/2013. 6. The question is as to whether or not in the facts and circumstances of the present case, the reasons for belief of escapement of income were recorded by the AO without application of mind, merely on the information received from the Investigation Wing of the Department. 7. As per the reasons, according to the information received from the Investigation Wing, in enquiry made by the Investigation Wing in the assessment proceedings of M/s. Ayushi Stock ....
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.... information available with the AO and the formation of belief by the AO is missing. No independent application of mind by the AO to the material forming the basis of the reasons recorded is evincible from the reasons. The AO, in the reasons, has just stated the information received and his conclusion about the alleged escapement of income. As to what the AO did with the information made available to him, is not discernible from the reasons. As such, 'Meenakshi Overseas' (supra), is squarely applicable. 10. 'Meenakshi Overseas' (supra) is by the Hon'ble Delhi High Court, whereas the decisions cited by the ld. DR are from other different High Courts. Of all these, 'Brij Mohan Agarwal' (supra) is by the Hon'ble Allahabad High Court, i.e., t....
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....erent. Here, the challenge of the assessee is that since in the reasons recorded, the AO has not spelt out as to what he did with the information received by him from the Investigation Wing, the reasons are hit by the vice of nonapplication of mind to the information so received. 12. From the above, it is evident that there is no parity whatsoever between 'Brij Mohan Agarwal' (supra) and the present case. Accordingly, Brij Mohan Agarwal' (supra) is of no help to the Department. 13. 'Hosang R. Debra vs. ITO' (supra) by the coordinate Bench is of no relevance. In that case, the ground concerning reopening was withdrawn. 14. Reliance by the Department on 'India Terminal Connector System Ltd.' (supra), it is seen, is misplaced. The questi....