TaxTMI 
TaxTMI 
TaxTMI 
2017 (12) TMI 1813
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....ed out by the DGIT (Inv.), Mumbai in the case of M/s Rajesndra Jain Group, M/s Sanjay Chaudhary Group and M/s Dharmichand Jain Group (entry operators). On the basis of the findings of the search operation, a list of beneficiaries of the accommodation entries from the above mentioned concerns was forwarded to the Assessing Officer along with the same information. The name of M/s N. N. Associates M. Vajubhai Jewelles was mentioned according to which the assessee was a beneficiary of accommodation entry of Rs. 14,54,400/- on account of sale during the financial year 2007-08. The said entry has been recorded on account of sale of jewellery/diamond to M/s N. N. Associates, Prop. Nihal Chand Rakyan by M/s Aadi Impex, 406, Saryu Jadda Khadi, Mahen....
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....opy of the order of the Tribunal in assessee's own case in the preceding assessment year i.e. A.Y. 2007-08 and submitted that under identical circumstances, the Tribunal has held that the reopening of the assessment on the basis of information received from the Investigation Wing is invalid and subsequent assessment framed was void ab initio. She also relied on the following decisions wherein it has been held that reopening on the basis of information received from the Investigation Wing without independent application of mind by the Assessing Officer is invalid :- a. M/s Lavitra Technologies Pvt. Ltd. vs. ITO (ITA No.2912/Del/2013 order dated 14.07.2016). b. G & G Pharma India Limited vs. ITO (ITA No.3149/Del/2013 order dated 09.1.2015....
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....sides, perused the orders of the authorities below and the Paper Book filed on behalf of the assessee. I have also considered the various decisions cited before me. A perusal of the reasons recorded for reopening the assessment, copy of which is placed at page 15 of the Paper Book, shows that the following reasons were recorded for reopening of the assessment :- Reasons for reopening the case u/s 147/148 of the I.T. Act, 1961 For A.Y. 2008-09. The Addl. Commissioner of Income Tax, Central Range, Surat vide letter no.SRT/Addl.CIT/CR/Rajendra Jain, Dharmichand Jain, Sanjay Choudhary Gr./2014-15/506 dated 13/03/2015 has informed that a search and seizure operation u/s 132 of the I.T. Act 1961 in the case of Sh. Rajendra Jain, Sh. Sanjay C....
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....n case in the immediately preceding assessment year and the Tribunal vide ITA No.1914/Del/2016 order dated 08.11.2016 held the reassessment proceedings as not valid by observing as under :- "6. I have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case it is noticed from the reasons recorded for reopening the assessment placed on page No.12 of the assessee's paper book that the reopening was done only on the basis of the information received from the Additional Director of Income Tax (Investigation) Unit VI New Delhi vide letter dated 24.3.2014 who suggested that notice u/s 148 was required to be issued to bring to tax the undisclosed income in respect of acco....
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.... it was not possible for the AO to have simply concluded: "it is evident that the assessee company has introduced its own unaccounted money in its bank by way of accommodation entries". In the considered view of the Court, in light of the law explained with sufficient clarity by the Supreme Court in the decisions discussed hereinbefore, the basic requirement that the AO must apply his mind to the materials in order to have reasons to believe that the income of the Assessee escaped assessment is missing in the present case. 13. Mr. Sawhney took the Court through the order of the CIT(A) to show how the CIT (A) discussed the materials produced during the hearing of the appeal. The Court would like to observe that this is in the nature of a p....