TaxTMI 
TaxTMI 
TaxTMI 
2021 (3) TMI 508
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....on of mind, on wrong facts, initiated mechanically and on borrowed satisfaction, hence illegal and unsustainable in law. 3. That the Ld. A.O., since failed in adjudicating all objections against reopening proceedings, properly, as per law and in totality and as per the directions of Hon'ble Supreme Court in the case of G.K.N. Drive Shafts, hence consequential proceedings and impugned asstt. is illegal and without jurisdiction. 4. That under the facts and circumstances, the approval u/s. 151 is fatally defective, given on reasons recorded by the A.O. having no jurisdiction, mechanical and without application of mind which makes the whole proceedings without jurisdiction, illegal and unwarranted. 5. That under the facts and circumstances, addition of Rs. 62,00,000/- u/s.68 for alleged share application money / capital reed, from following 04 companies is unsustainable in law as well as on merits:- Ethoria Capital Pvt. Ltd. Rs. 10,50,000/- Prasandhi Leasing & Finance Pvt. Ltd. Rs. 15,00,000/- Mayank Medilab Pvt. Ltd. Rs. 7,50,000/- Instant Travels & Tours Pvt. Ltd. Rs. 19.00.000/- Total Rs. 62.00.000/- 5.1 That without prejudice, Rs. 7,50,000/- out of Rs. 62,00,....
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....ating documents/materials were seized during the course of search. During the post search investigation and perusal of seized documents it was observed that Sh. Pradeep Kumar Jindal was engaged in the business of providing accommodation entries by providing cheques/PO/DD in lieu of cash to a large number of beneficiary companies thorough various paper and dummy companies floated and controlled by them. It was also evidently established by the Investigation Wing that Sh Pradeep Kumar Jindal is known entry providers and is the actual controller of various companies/proprietary firms/partnership firms. They control these entities through various persons by appointing them as directors/ partners /proprietors apart from nominating them as authorized signatories for maintaining the bank accounts of these entities but in fact all these persons act only as their stooges. The cash received from the recipient parties for providing the accommodation entries was first deposited in the accounts of these dummy firms/companies in the disguise of the cash received against the bogus sales, duly shown in the books of accounts. From there, this cash was transferred to the different paper companies fl....
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....irect link between the information/available with the department and the income escaping assessment. I have, therefore, reasons to believe that income to the extent of Rs. 62,00,000/- has escaped assessment relevant to A.Y,2010- 11. Thus, the same is to be brought to tax under section 147/148 of the I.T. Act 1961. Moreover, as the case pertains to a period beyond four years from the end of relevant assessment year, for issuing the notice u/s 148, necessary approval / sanction may kindly be accorded by the Pr. Commissioner of Income Tax, Delhi-4, New Delhi in view of the amended provision of section 151 w.e.f 01.06.2015. Date : 27.03.2017 Sd/- (H.K. Sharma) Income Tax Officer Ward-10(1), New Delhi." 3. Ld. Counsel for the assessee submitted that notice u/s 148 has been issued by ITO, Ward-10(4) who is jurisdictional Assessing Officer, but the reasons have been recorded by the different Assessing Officer. He pointed out that while seeking approval in terms of Section 151, the format clearly shows that the approval has been sought on the reasons recorded by ITO, Ward-10(1) who did not had jurisdiction. Thereafter, the notice u/s.148 has been issued on 31.03.2017 by ITO, War....
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....the 'reasons recorded' by ITO, Ward-10(1) on 30.03.2017, thereafter the notice u/s.148 issued by ITO, Ward-10(4) on 31.03.2017 and the assessment has been framed by the same officer on 30.12.17. Following chronology of event from the records placed in the paper-book makes it very clear: Date Event Pg. No. In PB 27.03.17 Reasons recorded by ITO Ward-10(1) New Delhi 2-3 30.03.17 Approval u/s.151 by PCIT on reasons recorded by ITO Ward-lO(l) 16-17 31.03.17 Notice u/s.148 issued by ITO Ward-10(4) New Delhi 4 30.12.17 Asstt. framed by ITO Ward-10(4) New Delhi 6. Thus, it is an undisputed fact that the proceedings have been initiated u/s.147 by recording the reasons by non Jurisdictional Assessing Officer and therefore, notice u/s.148 and consequent assessment order has been framed by the jurisdictional Assessing Officer. It is a trite law that the notice u/s.148 is a jurisdictional notice and the Assessing Officer can validly acquire jurisdiction u/s.147 after recording the reasons and thereafter issuing and serving a notice u/s 148 in accordance with law. The reasons have to be recorded by the jurisdictional Assessing Officer for reopening the assessmen....