TaxTMI 
TaxTMI 
2021 (3) TMI 330
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....tal income at Rs. NIL. The case of the writ applicant for the year under consideration was selected for scrutiny assessment and various details were called for by the respondent and same were duly furnished by the writ applicant from time to time. The then Assessing Officer framed scrutiny assessment under Section 143(3) of the Act vide order dated 31.03.2015 made various additions including the addition of Rs. 2,99,05,000/- under Section 68 of the Act in respect of share capital and share premium received by the writ applicant during the year under consideration, which included the sum of Rs. 7,50,000/- received from the Shaileshkumar Naika. The writ applicant had challenged the assessment order before the Commissioner of Income Tax (Appeals), who vide order dated 07.03.2013 confirmed the addition made under Section 68 of the Act. The writ applicant has challenged the order passed by the Commissioner of Income Tax (Appeals) before the Income Tax Tribunal and same is pending. 2.2 During the pendency of the Appeal, the Assessing Officer has reopened the assessment under Section 147 of the Act by issuing impugned notice dated 28.03.2019 under Section 148 of the Act. 2.3 At the ....
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.... having verified, the finding of the DDIT(Inv.), Unit-2, Surat is found to be in order that Shri Shaileshkumar R. Naika is an entry provider engaged in the business of providing accommodation entries to various entities. 4. After perusal of information provided by the DDIT(Inv.) Unit-2, Surat and material available on record, it is confirmed that the assessee company M/s. Alliance Filaments Ltd. has made bogus transaction with Shri Shaileshkumar R. Naika (an entry provider as established in the enquiry made by the DDIT(Inv.)-2 Surat) during the F.Y.2011-12 relevant to A.Y.2012-13. This transaction of Rs. 7,50,055/- during the F.Y.2011-12 relevant A.Y.2012-13 is nothing but the attempt to take accommodation entries through transaction with the said tainted concerns and an attempt to reduce its tax liability. 5. In view of above facts and discussion made hereinabove, the undersigned has reason to believe and be satisfied that the transactions made by the assessee company M/s. Alliance Filaments Ltd. with Shri Shaileshkumar R. Naika (an entry provider as established in the enquiry made by the DDIT(Inv.)-2, Surat) during the F.Y.2011-12 relevant to A.Y.201213 are bogu....
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....section 147 of the Act It is evident from the above discussion that in this case, the issues under consideration were never examined by the AO during the course of regular assessment /reassessment. This fact is corroborated from the contents of noticed issued by the AO u/s.143(2) proceedings. It is important to highlight here that material facts relevant for the assessment on the issue(s) under consideration were not filed during the course of assessment proceeding and the same may be embedded in annual report audited P&L A/c, balance sheet and books of account in such a manner that it would require due diligence by the AO to extract these information. For above stated reasons, it is not a case of change of opinion by the AO. 2.4 The writ applicant raised objections vide its communication dated 18.05.2019 and same came to be rejected by the respondent vide order dated 04.09.2019. 2.5 Aggrieved by the disposal of the objections by Assessing Officer, the writ applicant has come up before this Court by filing the present writ application. 3. We have heard Mr. Tushar Himani, the learned Senior Counsel assisted by Ms. Vaibhavi Parikh, the learned advocate for the writ ....
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....ng of the assessment and while recording the reasons, the Assessing Officer has not applied his mind independently so as to reach the conclusion that income has escaped assessment. Therefore, the reopening based on borrowed satisfaction is not tenable in eye of law. 4.6 It was further argued by learned Senior counsel that reopening of the assessment without any tangible material at the hands of Assessing Officer, he could not have proceeded to reopen the proceedings as the satisfaction arrived at by him based on information received from the Department. 5. In view of the above submission, Shri Tushar Himani, the learned Senior counsel prays that the writ application may be allowed. 6. Ms. Kalpana Raval, the learned Standing Counsel appearing for the revenue submitted that the authority is justified in reopening of the assessment as the basic requirement for initiation of proceedings under Section 147 of the Act, beyond the period of 4 years from the end of the relevant Assessment Year, is fulfilled in the present case. She further pointed out that the case of the assessee was reopened on account of the information received from Investigation Wing, Surat in the case of Shai....
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....y income chargeable to tax has escaped assessment for such assessment year by reasons of the failure on the part of the assessee to make a return under Section 139 or to disclose the fully and truly all material facts necessary for his assessment for that assessment year. 11. Having regard to the materials on record and considering the facts of the present case, the issue that falls for our consideration whether the revenue is justified in reopening the assessment for the year under consideration. 12. We have carefully examined the reasons recorded for reopening of the assessment for the year under consideration. The reopening is sought to be initiated based on the information provided by the DDIT (Inv.) Surat. In the reasons recorded, more particularly the paras 4 and 5 respectively, the Assessing Officer has observed that the assessee company M/s. Alliance Filaments Ltd. had made bogus transaction of Rs. 7,50,055/- on 19.11.2011 with Mr. Shaileshkumar Naika, who is an entry provider and the assessee company is one of the beneficiaries of the bogus transaction and income to the assessee to the tune of Rs. 7,50,055/- has escaped assessment for the year 2012-13 within the mean....