TaxTMI 
TaxTMI 
2020 (10) TMI 554
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....pon by both the sides. 5. Facts on record show that, in this case, the original assessment was framed u/s 143(3) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short]. Subsequently, the Assessing Officer came to notice that the assessee company had received accommodation entries to the tune of Rs. 38 lakhs during the year under consideration. This was pursuant to the information received from the Investigation Wing and on the basis of the report of the Investigation Wing notice u/s 148 of the Act was issued and served upon the assessee. The reasons for belief that income had escaped assessment read as under: 6. A perusal of the aforementioned reasons show that the basis for reopening a completed assessment after four years relate to the information that the assessee has received share application money from three companies which were alleged to be paper companies/ dummy companies and were nothing but accommodation entry providers. 7. Notice u/s 148 of the Act is dated 26.03.2014. The three companies alleged to be entry providers are: 1. Vogue Leasing and Finance Pvt Ltd 2. Pelicon Finance & Lease Ltd 3. Hillridge In....
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....ed 25.09.2009, the Assessing Officer raised the following queries: "1. Copy of your return tiled for the A.Y. 2007-08. computation of your income, audited Profit & Loss Accounts, Balance sheet. Audit Report and fax Audit Report in Form No.3CO with all the Annnexure/schedule. 2. A brief history of the case along with description on the nature of business activities carried out by the assessee company during the financial year relevant to Asstt. Year. 2007-08 and the date of it's starting. In case of any change in the business activity from that of the immediately preceding year or apart from existing business any new business started during the year, please elaborate the same. 3. A comprehensive note on all sources of income. Details of premises occupied for business activities specifying whether these premises are on rent, on lease or self owned and their use i.e. office, factory, godown, show room, guest house, store, branch office etc. with their complete addresses and telephone numbers. 4. Name and complete addresses of all the Directors of the company with jurisdiction where they are being assessed to tax at present. 5. Name and addr....
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....ained may also arc furnished. 20. Bank reconciliation statement of the previous years ending 3 1.03.2007. 21. Details of all movable assests and immovable properties for the year ending 31.03.2006 and 31.03.2007. . 22. Statement of affairs or B/S in respect of the company and the directors as well for the previous year ending 3 1.03.2006 and 3 1.03.2007. 23. Nature, month-wise details and documentary evidence of all expenses exceeding Rs. 20.000/- debited in accounts and copies of ledger accounts. 24. Details of complete addresses of sundry debtors. Circle/Ward in which they arc- getting assessed and their PANs alongwith confirmation of amounts in cases exceeding Rs. 50. 000/- . 25. Details of complete addresses of sundry creditors. Circle/Ward in which they arc- getting assessed and their PANs alongwith confirmations of amounts in cases exceeding Rs. 50,000/-. 26. Furnish comprehensive details of Opening and Closing stock in terms of quality, quantity and value alongwith supporting evidence. 28. Furnish copy of M.O.A. and copy of certificate of ROC showing date of incorporation of the company. 29. Cop....
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....observed as under: "12. Thus we find that the reasons in support of the impugned notice is the very issue in respect of which the Assessing Officer has raised the query dated 25 September 2017 during the assessment proceedings and the Petitioner had responded to the same by its letters dated 10 December 2017 and 21 December 2017 justifying its stand. The non-rejection of the explanation in the Assessment Order would amount to the Assessing Officer accepting the view of the assessee, thus taking a view/forming an opinion. Therefore, in these circumstances, the reasons in support of the impugned notice proceed on a mere change of opinion and therefore would be completely without jurisdiction in the present facts. Accordingly, the impugned notice dated 27 March 2019 is quashed and set-aside." 21. Considering the facts in light of the aforesaid ruling of the Hon'ble High Court, notice u/s 148 of the Act is set aside and assessment order framed pursuant to such notice is, accordingly, quashed. 22. Since I have quashed the assessment, I do not find it necessary to dwell into the merits of the case. 23. In the result, the appeal filed by the assessee in ITA No. 2323/....