TaxTMI 
TaxTMI 
2020 (11) TMI 1007
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....he assumption of jurisdiction of reassessment proceedings and the misapplication of the jurisdiction sanction being a fit case for issue of notice is being challenged on facts and law. 3. Because the action for initiation of re-assessment proceedings u/s 147 is unreasonable since while recording reasons, there is no application of mind much less independent application of mind and merely relying upon investigation report by AO, further reasons recorded are vague, lacking tangible material/ reasonable cause and justification. 4. Because the action is being challenged since the addition of Rs. 20,00,000/- has been made without having provided the cross examination of the person despite various requests on whose statement or information the proceedings under section 147 were initiated which is in violation of the settled principle of law. 5. Because the action is being challenged since the addition of Rs. 20,00,000 has been made without making proper investigation from the other party whereby assessee has discharged the onus by providing all relevant documents 6. Because the action for addition under section 68 amounting Rs. 20,00,000 is being challenged on facts and law while....
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.... and cashbooks details of cheques provided to the beneficiary companies entity/ persons were recorded. 2. It is informed that from the verification of the documents seized, it clearly appears that the following accommodation entries from various paper companies of the Surender Kumar jain group was provided to the above assessee:- name of the company Amount M/s Shankar Tradex Pvt Ltd 20,00,000 Total 20 ,00,000 4. In view of the additional information documents received from the investigation wing, I have reason to believe that the assessee has wilfully and knowingly concealed its particulars of income to avoid tax and that income of Rs. 20 lakhs chargeable to tax has escaped assessment for assessment year 2008 - 09 within the meaning of Section 147 of the income tax act 1961. (Ashok K Vishrant ) Income Tax Officer Ward 23(1), New Delhi" 5. In response to the above notice, assessee submitted that its original return filed on 16 September 2008 may be treated as a return filed in response to notice u/s 148 of the act. Subsequently notices were issued u/s 143 (2) of the act which was served upon the assessee on 7/12/2015. The assessee did not file any objection before the ....
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....ning of the assessment and he merely relied upon the report of the investigation wing. He further submitted that the reasons recorded are vague, devoid of tangible material, reasonable cause and justification. It was submitted that that the learned assessing officer has failed to record the year for which the accommodation entry belongs to, the details of the companies providing accommodation entry or used for providing accommodation entry to the assessee, dates of such accommodation entries, the amount of accommodation entries from the respective companies, the nature of the amount received by the assessee and medium i.e. bank account etc. From which these accommodation entries were obtained. He therefore submitted that the reasons recorded by the learned assessing officer is devoid of the basic requirement which could not have lead him to "reason to believe " and therefore same is without application of mind and deserves to be quashed. 8. The learned authorised representative despite asking by the bench did not argue on the merits of the case in ground number 4 - 7 of the appeal. Therefore ground numbers 1, 4 - 7 are dismissed. 9. The learned departmental representative vehemen....
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....ssessing officer has failed to apply his mind to the information available and has recorded vague reasons. The reasons recorded by the learned assessing officer have already been reproduced in this order earlier. On perusal of the reason it is apparent that in the first paragraph the learned assessing officer has mentioned that details about the entry operators. In the second paragraph the learned assessing officer has noted that from the verification of the documents seized it is clearly appears to him that accommodation entries from various paper companies were obtained by the assessee. However in the table reproduced in paragraph number two there is no reference to the nature of the accommodation entry, the parties from whom accommodation entries have been provided/obtained by the assessee, the various dates of the accommodation entries, the amount involved with respect to each of the parties from whom accommodation entries have been obtained. Instead of that the learned assessing officer in paragraph number [2] has mentioned name of the assessee itself and against the name of the assessee mentioned sum of Rs. 20 lakhs. In paragraph number [3] of the reasons it was further state....