TaxTMI 
TaxTMI 
2020 (9) TMI 533
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....remaining appeals and Order in this case may be followed in other appeals. Since common issues are involved in all the appeals, therefore, the appeals were heard together and are disposed of by a common consolidated Order. ITA.No.7376/Del./2019 - Shri Hanuman Prasad Agarwal : 4. Briefly the facts of the case that the assessee has originally filed his return of income on 22.07.2011 declaring income of Rs. 4,07,280/- after claiming deduction of Rs. 1,15,000/- under Chapter-VIA of the Income Tax Act. The return filed by the assessee reveals that assessee has declared income from salary at Rs. 4,80,000/- and income from other sources at Rs. 42,277/-. There being information with the Department that assessee has obtained accommodation entry of Rs. 15 lacs from Shri Pradeep Kumar Jindal, through his proprietary concern M/s. Timon Infrastructure Pvt. Ltd. Proceedings under section 147 of the Income Tax Act were initiated and notice under section 148 of the Income Tax Act was issued on 31.03.2018. In response, a letter was received from assessee asking for reasons to believe for issue of the notice under section 148 of the I.T. Act. With this letter, copy of the ITR filed on 22.07.20....
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....18. The return under section 148 was filed in July 2018. However, the case was taken-up by the A.O. in October 2018, only when the reasons were supplied when the letter was submitted to the A.O. i.e., on 31.10.2018. Thereafter, on consideration of the reasons, the objections were raised on 29.11.2018. It was submitted that the objections raised by the assessee against the reopening of assessment were never disposed of. Therefore, reassessment proceedings are bad in law. It was also submitted that reasons were recorded by the A.O. on the basis of the report received from Investigation Wing and there were no verification made by the A.O. and no material was supplied to the assessee on the basis which, the reasons for reopening were recorded. Therefore, it is a clear case of non-application of mind on the part of A.O. Since, the objections of the assessee have not been disposed of, therefore, reopening of assessment is bad in law. The Ld. CIT(A) while rejecting the objections of the assessee noted in his findings that objections raised by the assessee have been dealt with by the A.O. in assessment order by passing a composite order, therefore, no merit was found in the submis....
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....T, SMC-Bench in the case of Shri S.N.Arora/ Sapra in ITA.Nos.4251 & 4252/Del./2018 pronounced on 30.01.2020 in which it was held that "in case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and that A.O. failed to verify the information received from Investigation Wing, the reopening of the assessment would be unjustified and liable to be quashed." He has submitted that information received from Investigation Wing per se would not disclose any material to initiate re-assessment proceedings without further enquiry being undertaken by A.O. and such material relied upon by Investigation Wing or the A.O. have not been supplied to the assessee. Therefore, there is a total non-application of mind on the part of the A.O. to reopen the assessment. In support of his contention, he has relied upon Judgments of the Hon'ble Delhi High court in the cases of RNG Polyvinyle (I) Ltd., 396 ITR 5 (Del.), Meenakshi Overseas Pvt. Ltd., 395 ITR 677 (Del.) and GNG Pharma India 384 ITR 147 (Del.). He has submitted that since A.O. has admittedly did not confront any material supplied by the Investigation Wing to assessee, despite assessee made a specific....
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....rned Counsel for the Assessee also placed on record the objections filed by the assessee before A.O. against the reopening of the assessment dated 27/28/29/30.11.2018 in all the cases of the assessees in which the assessees have asked for copies of all the material collected by the Investigation Wing and supplied to the A.O. with the request that the same may be supplied to the assessee and all the parties may be produced for cross-examination whose statement may be relied upon by the A.O. The assessee also prayed that re-assessment proceedings may be dropped. Learned Counsel for the Assessee, therefore, submitted that the reopening of the assessment is bad in Law and is liable to be quashed. Learned Counsel for the Assessee also placed on record the detailed written submissions supported by case Law and the documents. 7. On the other hand Ld. D.R. relied upon the Orders of the authorities below and have also filed written submissions which is taken on record. The Ld. D.R. submitted that since assessee has taken accommodation entries and information was examined by the Investigation Wing and supplied to the A.O, therefore, initiation of re-assessment proceedings is justified ....
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....indal and other dummy directors in this regard. The information also relied upon certain incriminating documents, found during the course of search at the premises belonging to Sh. Pradeep Kumar Jindal. 3. The information (extracted from Annexure-A annexed to the letter) pertaining beneficiary of this charge i.e. assessee, is as follows: S.No. Name & address of the beneficiary (as per ITD) Amount (Rs.) Date of entry Entry provided by 1. Sh. H.P. Aggarwal 5,00,000 19.08.2010 M/s Timon Inrastructure (P) Ltd. 2. Sh. H.P. Aggarwal 5,00,000 19.08.2010 M/s Timon Infrastructure (P) Ltd. 3. Sh. H.P. Aggarwal 5,00,000 19.08.2010 M/s Timon Infrastructure (P) Ltd. Total 15,00,000 4. The data available with ITD system was analyzed in this case and on analyzing data, it has been transpired that there are accommodation entry remained unsubstantiated as the nature of income declared by the assessee does not commensurate with the transaction/investment of property. 5. From the above information, it is clear that the assessee has accommodation entry from his unexplained s....
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.... accommodation entry of Rs. 5 lakhs. Thus, there is a factual error in the reasons recorded for reopening of the assessment. The reasons are based on incorrect and non-existing material. Whatever material was relied upon by the A.O. for recording the reasons for reopening of the assessment have admittedly not been supplied to the assessee. No statement recorded during the course of search operation in the case of Shri Pradeep Kumar Jindal have been confronted to the assessee and no person was produced for cross-examination on behalf of the assessee. Learned Counsel for the Assessee relied upon several Judgments above in support of this contention. The crux of the said Judgments had been that in case incorrect, wrong and non-existing reasons are recorded by the A.O. for reopening of the assessment and that A.O. failed to verify the information received from Investigation Wing, the reopening of the assessment would be unjustified and is liable to be quashed. In the present case, the facts noted above clearly show that A.O. did not verify the report of the Investigation Wing and accepted the same as it is that assessee has received accommodation entries of Rs. 15 lakhs despite it w....