TaxTMI 
TaxTMI 
2020 (11) TMI 766
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....6) of the Income Tax Act, 1961 (hereinafter referred to as 'Act'). 2. Brief facts relating to the case are that the assessee company is stated to be a Sub Broker of Ludhiana Stock Exchange Securities Ltd. (LSE) and had filed its return of income for the impugned year declaring income of Rs. 1,99,740/- which was processed under section 143(1) of the Act. Thereafter, information was received from the office of the DIT (Inv.)-II, New Delhi with regard to accommodation entries received by the assessee amounting to Rs. 20,00,000/- on 16/02/2009 in the form of share capital including premium through cheque from Surendra Kumar Jain Group of New Delhi. The A.O. recorded reasons to believe for escapement of income in this case and reopened the as....
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....d. Assessing Officer u/s 68 of the Income Tax Act, 1961, received by the appellant company as share capital and share premium. 3. That he was further not justified to arbitrarily uphold the action of the Ld. Assessing Officer in making an addition of Rs. 60,000/- made by the Ld. Assessing Officer on account of alleged commission paid to broker by resort to provisions of Section 69C of the Income Tax Act, 1961. 4. That he was further not justified to arbitrarily uphold the action of the Ld. Assessing Officer in making an addition of Rs. 40,000/- made by the Ld. Assessing Officer on account of alleged commission paid to broker by resort to provisions of Section 69C of the Income Tax Act, 1961. 5. We shall take up first th....
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....s / entities through cheques through a number of paper and dummy companies in lieu of cash. These dummy companies are totally managed and controlled by Shri Surendra Kumar and his brother Shri Virendra Jain. M/s Century Fiscal Services Ltd. has obtained accommodation entry from M/s Virgin Capital Services Pvt. Ltd. one of the paper company from various paper companies of Shri Surendra Kumar Jain Group through cheque in lieu of cash of an amount of Rs. 20,00,000/- by paying sum of Rs. 20,00,000/- to the said company out of its undisclosed income during the F.Y. 2008-09 relevant to A.Y. 2009-10. The assessee has filed its return of income for the A.Y. 2009-10 declaring income of Rs. 1,99,740/-, though it was having income of....
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....his case I have also considered written submissions filed by the assessee company through its learned AR vide letter 23.06.2016 on the issue under reference. I have further considered various judicial pronouncements relied upon by the learned AR of the assessee as well as other material placed by him on record. On careful consideration of the rival contentions, I am of the opinion that the Assessing Officer was having sufficient material/information in his/her possession to form a belief that the income of the assessee company to the extent of Rs. 20,00,000/- has escaped assessment. The information received by the Assessing Officer contains complete details of the modus operandi adopted by Surendra Kumar Jain group of new Delhi to provide a....
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....e Act, it is the A.O. who has to be satisfied and form belief of escapement of income. The AO ,no doubt acts on information coming in his possession, for the purpose of reopening a case, but before acting on the same he has to be satisfied that the information sufficiently leads to a belief of escapement of income . He has to apply his mind to the information to arrive at such satisfaction. The reliance placed by the Ld. Counsel for the Assessee on latest decision of the ITAT Delhi Bench in the case of M/s Rajshikha Enterprises Pvt. Ltd. (supra) ,is apt, wherein the aforesaid proposition of law was upheld relying on decisions of the Hon'ble Delhi High Court in the case of CIT Vs G & G Pharma India Ltd.( 2016) 384 ITR 147 & Pr.CIT Vs. Meenak....