2022 (3) TMI 138

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Ld. CIT(A) which are reproduced as under: i. That the Ld. Assessing Officer was grossly erred in reopening the assessment merely on the basis of information from Investigation Wing. ii. That the reopening of assessment made by Ld. AO is not at as per law. iii. That Ld. Assessing Officer failed to formulate independent belief and reopened the assessment on borrowed satisfaction." 4. In the additional grounds taken before the Ld. CIT(A) as well as before us in ground no. 1 & 2, the appellant has challenged the legality of the assessment proceedings made u/s 147 r.w.s. 148 of the Incometax Act, 1961 (hereinafter referred to as the 'Act'). 5. From the perusal of para 12 of the impugned order of Ld. CIT(A), it....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ucted at the business premises of Sri Praveen Agarwal and his group companies at Kolkata. In his statement recorded in course of search. Sri Agarwal accepted on oath that he had registered a large no. of paper companies with bogus share capital and premium which have subsequently been for commission. Sri Agarwal also accepted that he has given entries to bogus expenses like commission, contractual expenses, professional charge etc. Prior to sale have been subsequently been liquidated and realization have been credited in the bank account for sold companies. The source of such realizations have not been explained. In this case, the assessee Co. has raised unexplained paid up share capital of Rs. 67,37,520/- and share premium of Rs. 1,69,00,0....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....a generalized way reopened the assessment whosoever had transaction with him or his companies. Reopening of assessment on the basis of generalized statement without naming the particular person/company is again improper and not as per law. 12.10. Ld. Assessing Officer has used the statement of Praveen Agarwal or documents (like ledger copy from his books) taken behind the back of the appellant which as per the decided several case laws should not have been used without making available the copies of same to the appellant and confronting such person to the appellant. This is again a big flaw in the assessment making the addition void ab-initio and not as per law." 6. It is further noted that Ld. CIT(A) while giving decis....