TaxTMI 
TaxTMI 
2021 (8) TMI 962
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....uantification of escaped assessment at the time of recording of reasons as there was no cogent or definite material on record in support of his reasons to believe that certain income has escaped assessment. 1.2. That CIT (A) has failed to appreciate that the AO has solely relied on the vague and scanty report of the Investigation Wing for assuming jurisdiction under section 147 without making any independent enquiry and judicious application of mind The reasons recorded were wrong; without application of mind; and there was no tangible evidence, which indicated that income of the Assessee had escaped assessment. 2. That the learned assessing officer erred in law in initiating the assessment proceedings under camouflage of section 147 of the Act without having any bonafide or definite 'reason to believe' that certain income has escaped assessment for the assessment year under consideration as contemplated under section 147, as the basis of addition made in the assessment order are contrary to the reason recorded. Hence, the addition so made by the learned assessing officer is without jurisdiction and the assessment is liable to be quashed. 3. That the lear....
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....ut making any independent enquiry and judicious application of mind The reasons recorded were wrong; without application of mind; and there was no tangible evidence, which indicated that income of the Assessee had escaped assessment. 2. That the learned assessing officer erred in law in initiating the assessment proceedings under camouflage of section 147 of the Act without having any bonafide or definite 'reason to believe' that certain income has escaped assessment for the assessment year under consideration as contemplated under section 147, as the basis of addition made in the assessment order are contrary to the reason recorded. Hence, the addition so made by the learned assessing officer is without jurisdiction and the assessment is liable to be quashed. 3. That the learned assessing officer erred in law in initiating and completing reassessment proceedings under section 147/148 of the Income Tax Act, 1961 by disposing the objection for initiation of assessment proceedings in mechanical manner without passing a speaking order. Hence, the initiation and completion of reassessment proceedings under section 148 of the Act is bad in law and liable to be quashed.....
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....ing any bonafide or definite 'reason to believe' that certain income has escaped assessment for the assessment year under consideration as contemplated under section 147, as the basis of addition made in the assessment order are contrary to the reason recorded. Hence, the addition so made by the learned assessing officer is without jurisdiction and the assessment is liable to be quashed. 3. That the learned assessing officer erred in law in initiating and completing reassessment proceedings under section 147/148 of the Income Tax Act, 1961 by disposing the objection for initiation of assessment proceedings in mechanical manner without passing a speaking order. Hence, the initiation and completion of reassessment proceedings under section 148 of the Act is bad in law and liable to be quashed. 4. That the learned assessing officer erred both in law and fact in making addition of Rs. 24,48,452/-/-- on account of purchases made from undisclosed sources only on the basis of statements of proprietors of the firm recorded during the course of search and seizure operation without affording the appellant an opportunity to cross examine the deponents even though specific re....
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....The Ld. AR submitted that the CIT(A) erred in upholding the addition made by the AO without fully appreciating the facts and contention of the assessee and therefore, the Order of the CIT(A) is bad in law. The Ld. AR submitted that the CIT(A) erred in affirming the jurisdiction of the AO under section 147, and ignoring that there was neither any satisfaction of the AO nor quantification of escaped assessment at the time of recording of reasons as there was no cogent or definite material on record in support of his reasons to believe that certain income has escaped assessment. The Ld. AR submitted that the CIT(A) failed to appreciate that the AO has solely relied on the vague and scanty report of the Investigation Wing for assuming jurisdiction under section 147 without making any independent enquiry and judicious application of mind The reasons recorded were wrong; without application of mind; and there was no tangible evidence, which indicated that income of the Assessee had escaped assessment. The Ld. AR submitted that the Assessing Officer erred in law in initiating the assessment proceedings under camouflage of section 147 of the Act without having any bonafide or definite 'rea....
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....the parties and perused the material available on record. It is pertinent to note that all the documents were before the Assessing Officer and the Assessing Officer has merely relied upon the statement of Sh. Rajendra Jain which was later on retracted. The assessee has given the details of purchase bills, sales bills, stock register and bank statements and after going through the evidences which was before the Assessing Officer and before us , it is found that the same is tallying with, with the transaction which was allegedly held as bogus transaction by the Assessing Officer . Thus, as per the documents provided by the assessee transaction is genuine, parties were before the search/investigation wherein and there statements on record which does not reflect that the assessee is actual for the of the accommodation entry. The statements were also retracted later on. Thus, the sanctity of the statement cannot be the sole basis for making an addition. The search operation was already looked into by the Tribunal for Assessment Year 2007-08 of the Tribunal held as under:- " 9. I have considered the submissions of both the parties and carefully gone through the material availabl....