2018 (6) TMI 1767

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....IT Act, 1961. 2. The ld. CIT (A) has erred on facts and in law in confirming an addition of Rs. 30 lakhs u/s 68 by treating the share capital money received from the following parties as unexplained :- M/s. Lexus Infotech Ltd. Rs. 10 lacs. M/s. Vanguard Jewels Ltd. Rs. 20 lacs. 3. The ld. CIT (A) has erred on facts and in law in confirming an addition of Rs. 15,000/- u/s 69C on account of alleged commission payment on the above share capital money. 4. The assessee craves to amend, alter and modify any of the grounds of appeal. 5. The appropriate cost be awarded to the assessee. Ground No. 1 is regarding validity of reassessment under section 147 of the Act. 2. The ld. A/R of the as....

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....money from these parties against allotment of shares, whereas the AO has stated in the reasons that the assessee has received Rs. 30 lacs in the nature of loan/advance. Thus the ld. A/R has submitted that when the assessee has duly recorded all these transactions in the books of accounts and disclosed in the return of income as well as during the assessment proceedings completed under section 143(3), then the reopening of the assessment is not valid and liable to be quashed. 2.1. On the other hand, the ld. D/R has relied upon the orders of the authorities below and submitted that the AO has followed the due process for reopening of the assessment. She has filed the approval granted by the ACIT for the reasons for reopening of the assessm....

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....ine business activity and was providing accommodation entries in lieu of cash obtained from the beneficiaries. On the basis of the information available on record, I have reasons to believe that income of Rs. 30,00,000/- chargeable to tax has escaped assessment within the meaning of section 147 of IT Act, 1961. Therefore, your goodself is requested to accord approval in terms of provisions of section 151(2) of the IT Act, 1961 for initiating proceedings u/s 147 and to issuance of notice u/s 148". It is also not the case of the AO that the assessee has not disclosed fully and truly all material necessary for assessment. It is manifest from the reasons recorded that the AO has even not made any allegation that the assessee failed ....