TaxTMI 
TaxTMI 
2021 (12) TMI 797
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....d. CIT-A erred in sustaining the order passed by Ld. AO u/s 147/143(3) without appreciating that no where assessee is validly issued and served with jurisdictional notice u/s 148 dated 31.03.2016 without which entire proceedings are void ab initio; 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 assessee is not supplied valid reasons to believe along with approval if any before completion of assessment proceedings without which entire proceedings are void ab initio; 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that just because cheques credited in a/c of bhola trading co were credited into other accounts from where cash was withdrawn as stated in para 3.9 of assessment order and just because proprietor of said concern did not appear in response to summons before investgationwing cant give rise to valid reasons to believe as at best it can be reason to suspect only and without reasons to believe entire proceedings are void ab ini....
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....3(3) without appreciating that none of evidence filed by assessee is overruled in accordance with law ; 3.2 That on the facts and in the circumstances of the case and in law, Id CIT-A erred in sustaining the order passed by Ld AO u/s 147/143(3) without appreciating that when sales/turnover are not doubted purchase cant be doubted is well settled principle; 3.3 That on the facts and in the circumstances of the case and in law, Id CIT-A erred in sustaining the order passed by Ld AO u/s 147/143(3) without appreciating that payment of purchases is made through banking channel as replied in our letter to AO refer page 2 &3 of assessment order and duly accepted at para 3.8 of assessment order which fact is no where contradicted and no material is brought on records for cash flying back to assessee herein from stated banking channel payments without which entire addition is bad and deserves to be deleted; 3.4 That on the facts and in the circumstances of the case and in law, Id CIT-A erred in sustaining the order passed by Ld AO u/s 147/143(3) without appreciating that it was specifically pointed out to Ld CIT-A vide ground no 6 of appeal that assessee fully coo....
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.... belief by the assessing officer that the income of the assessee has escaped assessment. 6. The Ld. DR on the other hand has submitted that the due satisfaction was recorded by the Assessing Officer before reopening of the assessment and that the Assessing Officer has rightly reopened the assessment as he has information from the investigation wing that the assessee has obtained a bogus entry of purchase. 7. We have considered the rival contentions of both the Ld. Representative of the parties. A perusal of the reasons recorded for reopening of the assessment (as reproduced above) would show that the Assessing Officer had only an information that the assessee M/s. Dove Consultants Pvt. Ltd. has made a transaction with M/s. Bhola Trading Company. However, there was no reliable information that the said transaction was a sham transaction. The assessee admittedly is engaged in the business of Electric Contractor. The assessee purchased electric cables from the said M/s. Bhola Trading Company. The Assessing Officer, however, doubted the said transaction. However, it has been noted by the Assessing Officer himself that during the investigation, ledger account of M/s. Bhola Trading....
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.... stands allowed. Order pronounced in open court on this 29th day of September, 2021. ============= Document 1 The ADIT (Investigation), unit - 5 (3), New Delhi vide letter F.No. ADIT (Inv.)/U- 5(3)/2015-16/256 dated 23.03.2016 intimated that M/s Dove Consultants Pvt Ltd [PAN: AACCD5338B] is getting accommodation entry from a shell company namely M/s Bhola Trading Co. During the financial year 2008-09, M/s Dove Consultants Pvt Ltd [PAN : AACCD5338B] has taken accommodation entry of Rs. 2,36,76,932/- from M/s Bhola Trading Co. During the investigation M/s Dove Consultants Pvt Ltd [PAN: AACCD5338B] has failed to furnish the nature of transaction made with M/s Bhola Trading Co. The report also states that creditworthiness & genuiness of M/s Bhola Trading Co. is dubious and also these companies have failed to prove the genuiness of these transaction. I have perused the information received from the Investigation Wing. The fact that emerges that:- M/s Bhola Trading Co. was receiving funds from M/s Dove Consultants Pvt Ltd (PAN: AACCD5338B) through Orintal Bank of Commerce A/C No. 00711131000066. The credit so appeared in the account of M/s Bhol....
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....008 By Purchase Account 3-11-2008 B Purchase Account 15-11-2008 E Purchase Account 18-11-2008 E Purchase Account 29-1-2009 TO OBC A/c No. 00711131000068 30-1-2009 TO OBC A/c No. 00711131000088 2-2-2009 TO OBC Alo No. 00711131000068 31-3-2009 TO OBC A/c No. 00711131000058 Purchase 038 32,22,700.00 Purchase 047 12,03,800.00 Purchase 049 16,62,960.00 Purchase 052 10,20,074.00 Purchase 054 34,58,978.00 Purchase 038 11,67,660.00 Payment 8,46,040.00 Payment 31,84,480.00 Payment 22,74,480.00 Payment Closing Balance 8,00,000.00 1,27,40,760.00 2,36,76,032.00 1,09,36,172.00 2,36,76,932.00 2,36,76,932.00 Analysis of ITR of the assessee company has been carried out As the source of funds are not known, therefore, the returns of income of assessee Company have been downloaded from the ITD system and the same have been examined in the light of information received from Investigation Wing. On comparative examination of return of income of the assessee company for A.Y. 2008-09 & 2009-10, 2010-11 the following has been observed with regard to the share capital an....