TaxTMI 
TaxTMI 
2021 (4) TMI 169
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....5/484 dated 12.03.2015 intimating that in pursuance of certain information received from credible sources in the case of Sh. Salish Monga. It was revealed that Disha commercial Pvt. Ltd. is having Bank Account No. 03071 101 1004576 with Andhra Bank, Kami Bagh. Delhi. On examination, it is revealed that there is cash credit of Rs. 2.8 crore during Oct-Nov, 2011 followed by back to back transfer of these amounts to various individuals and some entities. It is also revealed that these accounts have cash deposits on regular basis and such funds are subsequently transferred to other entities. It was also observed that these entities have common directors/addresses indicating thereby that all these companies entities belong to same group. M/s. Balbir Investments Pvt. Ltd. is one of such entity. Further examination of bank statements also revealed that there are also fund transfers Iron) other entities. In following entities cash has been deposited which has been further transferred to M/s. Balbir Investments Pvt. Ltd. Entityandaddress as per pass book PAN Account Number Nameand Branch M/s Harvin Exports Pvt. Ltd. 1304. Padmalower-I. Rajindera Place, New Delhi A....
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....xpired form the end of the relevant assessment year, and the case of the assessee has not been assessed earlier U/s. 143(3)/147 of the IT Act, 1961. In view of the above facts, I am satisfied that the Share Premium amount to the extent of Rs. 5,40,000/- is the amount of bogus accommodation entry entered into by the assessee which is liable to be assessed in the hands of the assessee and has escaped assessment in the assessment year 2009-10. Therefore, it is a fit case for initiating proceedings u/s. 147 of the Act and issue of notice u/s. 148 of the Act." 3. Accordingly, a notice u/s. 148 of the Act was issued to the assessee. The assessee objected to such reopening, which was disposed of by Assessing Officer by passing a speaking order. The Assessing Officer, thereafter, proceeded to complete the assessment. He noted that the assessee has received share capital of Rs. 5,40,000/- from certain paper/briefcase company without any business activity and that their accounts are being used to rotate the funds for accommodation entries of different types to various beneficiaries. He, therefore, asked the assessee to prove the identity and creditworthiness of the share applican....
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....as assessee clarified with perspicacity that no share capital is reed by assessee from M/s. G.J. Holding Pvt. Ltd.) thus depicting there is complete non application of mind at all stages be it reasons recording, objection disposal and final order passing, ergo entire proceedings suffers from serious and incurable defects which requires orders passed may please be quashed and returned income may be restored. 1.2. That on the facts and in the circumstances of the case and in law, Ld. CIT-A erred in sustaining the order passed by Ld. AO u/s. 147/143(3) without appreciating that "rubber stamp" reasons in present case are based on borrowed satisfaction and are without independent application of mind and even no requisite and appropriate enquiry is made into valid return filed by assessee before formulating purported belief (like issue of enquiry notice to assessee) which so called belief suffers from lack of live nexus and is based on mere pretence only; 1.3. That on the facts and in the circumstances of the case and in law, Ld. CIT-A erred in sustaining the order passed by Ld. AO u/s. 147/143(3) without appreciating that approval of higher authority (although not conf....
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....ssing Officer comes to conclusion that some items have escaped assessment, then notwithstanding that those items were not included in the reasons to believe as recorded for initiation of the proceedings and the notice, he would be competent to make assessment of those items. For every new issue coming before AO during the course of proceedings of assessment or reassessment of escaped income, and which he intends to take into account, he would be required to issue a fresh notice u/s. 148 of the Act. Therefore, in the present circumstances, when the assessee instead of investing any money in G.J. Holdings Ltd. has received an amount of from G.J. Holding Ltd., the Assessing Officer could have issued fresh notice and he could not have proceeded on the basis of non-existent or wrong/erroneous facts for reopening of the assessment. 7. The learned DR, on the other hand, heavily relied on the orders of the Assessing Officer and the CIT(A). He submitted that the Assessing Officer on the basis of information obtained from the Investigation Wing has reopened the assessment. Since, the Investigation Wing is a part of the Department and credible information was obtained, therefore, the asses....