AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (3) TMI 721
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....rned by the Postal authorities with remarks "Left address - Return to Sender" on 10-08-2020, 12-09-2020, 30-09-2020 and 11-01-2021 respectively. In view of the above scenario, where the assessee has left the address and the notices sent through speed post have been returned by the Postal Department several times, we are left with no option but to dispose of the appeal ex parte qua the assessee, on merits. 3. The first issue raised in this appeal through ground nos. 1 and 2 is against the initiation of re-assessment proceedings. Briefly stated, the facts of the case are that the AO initiated re-assessment proceedings with the following remarks as reproduced on pages 2 and 3 of the assessment order: "The Income Tax Department have carried ....
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....5 Sarthak Traders Pvt. Ltd., Kolkata 21/11/2013 No reply received These investors have invested in the company Gopal Extrusions (P) Ltd., Jalgaon by paying share premium. Out of 15 letters issued u/s.133(6), 9 letters have been received back by the postal department. In 5 cases, letters have been served but there is no response/compliance. Thus, it is clear that the so called investors, i.e. Venture Capital Companies either do not exist at the given address or are front persons to introduce non income tax paid money of the beneficiary company, i.e. Gopal Extrusions (P) Ltd., Jalgaon. In view of the facts mentioned above, there is evidence to show that there is an escapement of income to the tune of Rs. 6,98,41,500/- within....
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....epartment. In 5 cases, notices were served but there was no response. This led to the formation of belief by the AO that the income escaped assessment. 6. At this juncture it is pertinent to note that instantly we are concerned with the stage of issuance of notice of reassessment. In order to get jurisdiction, what is necessary is to see the existence of reason to believe about the escapement of income and not any conclusive evidence of escapement, which aspect assumes significance only when the reassessment proceedings are taken up after initiation. The Hon'ble Supreme Court in Raymond Woolen Mills vs. ITO (1999) 236 ITR 34 (SC) has held that there should be reason to believe about the escapement of income at the stage of initiation of re....
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....147(a) r/w s. 148 only if on the basis of specific, reliable and relevant information coming to his possession subsequently, he has reasons which he must record, to believe that by reason of omission of failure on the part of the assessee to make a true and full disclosure of all material facts necessary for his assessment during the concluded assessment proceedings, any part of his income, profit or gains chargeable to income-tax has escaped assessment. He may start reassessment proceedings either because some fresh facts come to light which were not previously disclosed or some information with regard to the facts previously disclosed comes into his possession which tends to expose the untruthfulness of those facts. In that case, the ITO ....
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....ny and recorded his statement. In response to questionNo.2, he admitted that: "there was no business activity of the assessee company and it had closed its business of pipe fitting since 2007". In response to question No.10 as to how the alleged investor companies from Mumbai and Kolkata came to know about the company, the director of the assessee company submitted that he and certain other fellow-directors knew some persons engaged in private equity placement. In answer to question No.15 as to how much premium was paid at the time of subscription to share capital, it was answered that premium of Rs. 30/- per share was paid as against its face value of Rs. 10/-. When a specific query as to whether the assessee company had started any busine....