TaxTMI 
TaxTMI 
2020 (12) TMI 1199
X X X X Extracts X X X X
X X X X Extracts X X X X
....on lack of jurisdiction. 4. The Ld. CIT(A) has erred in law and on the facts and circumstances of the case in upholding the order passed by the Ld. Assessing Officer ("Ld. AO") thereby making addition of Rs. 45,00,000/- under Section 68 of the Act. 5. The Ld. CIT(A) has erred in law and on the facts and circumstances of the case in upholding the order passed by the Ld. Assessing Officer ("Ld. AO") thereby making addition of Rs. 90,000/- under Section 69C of the Act. 6. The above grounds of appeal are independent and without prejudice to one another. 7. The appellant may be allowed to add / withdraw or amend any ground of appeal at the time of hearing. Later on, the assessee has also filed an additional ground which is also reproduced as under:- 1(i). That on facts and circumstances of the case, the Ld. CIT(A) has erred in upholding validity of notice u/s 148 and consequential reassessment proceedings u/s 147 even though the same are without recording proper reasons in terms of provisions of section 147 of the Income tax Act, 1961. ii. That the reasons are merely on the basis of information from Revenue Authorities, Mumbai and in absence of independent application of mi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s Ltd (Known as M/s Aadhar Venture India Ltd) for A.Y. 2010-11, it has been seen that statement of Shri Om Prakash Khandelwal, Promoter of the company was recorded, where he was operating small accommodation entry business using his company M/s Prraneta Industries Ltd., after deducting the expenses commission at 2% for providing one time accommodation entries of share capital introduction. 3. From the verification of documents seized from the residents of Shri. Shirish C. Shah, the Assessing Officer is of the view that assessee company had obtained accommodation entries from his various paper companies in lieu of cash during the financial year 2009-10 relevant to the assessment year 2010-11 for an amount of Rs. 45 Lac. Assessing Officer also examined the return of income of the assessee in the light of information received. Objection filed by the assessee has also been disposed of by the Assessing Officer vide order dated 10.08.2017. After examining the documentary evidence filed by the assessee as well as the record, the Assessing Officer is of the view that assessee has not discharged its onus as required under section 68 of the Income Tax Act and has also not proved the genuine....
X X X X Extracts X X X X
X X X X Extracts X X X X
....as initiated the re-assessment proceedings against the assessee company without carrying any independent enquiry or investigation in respect of the statements of Shirish C. Shah and Om Prakash Khandelwal. At the time of recording the reasons, the statements were not available with the AO and even these statements having been subsequently retracted have no evidentiary value. Learned counsel for the assessee further submitted that assessee company has raised objection in respect of the proceedings under section 147/148 of the Act and requested the Assessing Officer to provide the copies of statement of Shri. Shirish C. Shah, copy of assessment order of M/s Prraneta Industries Limited for Assessment Year 2010-11 and copy of bank statement of M/s Prraneta Industries Limited and any other information or material on the basis of which was recorded which was not provided by the Assessing Officer to the assessee which clearly established that no documentary evidence was available with the Assessing Officer at the time of recording the reasons even otherwise. This is a case of borrowed satisfaction and is not sustainable in the eyes of law. Learned counsel for the further stated that the o....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in money laundering business for beneficiaries - According to Assessing Officer, sources of transactions were not explained - Notice was issued by Assessing Officer to reopen assessment on aforesaid basis that income chargeable to tax to extent of accommodation entry had escaped assessment - Whether information received from investigation wing could not be said to be tangible material per se without a further inquiry being undertaken by Assessing Officer to establish link between 'tangible material' and formation of reason to believe that income had escaped assessment and consequently, reassessment was unjustified - Held, yes" 9. In the case of Pr. CIT vs. G & G Pharma Ltd [2015] 384 ITR 147 (Del HC), relevant portion is reproduced as under:- In the present case, after setting out four entries, stated to have been received by the Asessee on a single date i.e. 10th February, 2003, from four entities which were termed as accommodation entries, which information was given to him by the Directorate of Investigation, the AO stated: "1 have also perused various materials and report from Investigation Wing and on that basis it is evident that the assessee company has introduced ....