TaxTMI 
TaxTMI 
2022 (5) TMI 283
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....and final disposal of this petition, to stay implementation and operation of the notice dated 30.03.2021 at Annexure - 'A' to this petition and stay further proceedings for the A.Y. 2014-15. c. any other and further relief deemed just and proper be granted in the interest of justice; d. to provide for the cost of this petition." 2. The fact giving rise to this writ application may be summarized as under: 2.1 The writ applicant is a Multi-State Scheduled Cooperative Bank. We take notice of the fact that one M/s. Siddhi Cooperative Bank Limited figures in this litigation. For the A.Y. 2014-15, M/s. Siddhi Cooperative Bank Limited had filed its return of income on 30.09.2014 at Rs.10,37,230/-. The case was selected for scrutiny and the assessment order under Section 143(3) of the Income Tax Act, 1961 (for short "the Act, 1961") was passed on 27.09.2016. 2.2 It appears from the materials on record that M/s. Siddhi Cooperative Bank Limited got merged with the writ applicant bank w.e.f. 09.04.2019. 2.3 The writ applicant bank is in receipt of a notice issued by the respondent under Section 148 of the Act seeking to reopen the assessment in the case of M/s. S....
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....oparkar has to submit further in the matter. 3. Issue Notice to the respondent for final disposal of this writ-application, returnable on 12.04.2022. 4. Let there be an ad-interim order in terms of paragraph 7(b). 5. On the returnable date, notify this matter on top of the Board." 2.7 The sum and substance of the impugned notice issued under Section 148 of the Act is that the respondent is in receipt of an information from the DDIT (Inv.) Unit-2, Surat, that at the relevant point of time, M/s. Siddhi Cooperative Bank Limited had transmitted huge amount to various foreign countries. In the reasons assigned by the Assessing Officer, we find names of 12 parties involved in the transactions. The 12 parties allegedly involved and identified in the transactions during the period between 2009 and 2016 are as under: • BajrangDaim Pvt. Ltd. - T2.8 • Agni Gems Pvt. Ltd. - T2.1 • Hem Jewels Pvt. Ltd. - T2.2 • MB Offshore Distributors Pvt. Ltd. - T2.3 • MaaMumbadevi Gems Pvt. Ltd. - T2.4 • R.A. Distributors Pvt. Ltd. - T2.5 • Ramshyam Exports Pvt. Ltd. - T2.6 • ....
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....nbsp; (AY 2014-15) 487 Siddhi Co-Op. Bank Limited AAGAS2970L Bajrang Daim Pvt. Ltd. - T2.8 78,50,000 Hem Jewels Pvt. Ltd.- T2.2 62,45,000 Maa Mumbadevi Gems Pvt. Ltd.- T2.4 17,00,000 MB Offshore Distributors Pvt. Ltd. - T2.3 4,49,34,840 Ra Distributors Pvt. Ltd. T2.5 5,26,04,840 Ramshyam Exports Pvt.Ltd.-T.26 87,00,000 Riddhi Exim Pvt. Ltd. - T2.7 5,99,34,840 Shimmer Exim Pvt. Ltd.T2.10 78,10,000 Total 18,97,79,520 From the above, it is found that no real business is being carried out by the assessee. Therefore, all the transactions carried on by the assessee are also mere paper transactions where no real exchange of goods or service have taken place. The transactions undertaken by various beneficiaries are sham transactions reflected in their books of accounts for the purpose of tax evasion." 2.9 We also quote paras 4,5,6 and of the reasons as under: "4. Enquiries ....
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....he part of assessee to disclose fully and truly all necessary facts during assessment proceedings. For aforesaid reasons, it is not a case of change of opinion by the A.O. It is evident from the above facts as mentioned in the para 3 & 5, that the assessed had not truly and fully disclosed material facts necessary for his assessment for the year under consideration On the basis of the above, I have reason to believe that income of the assessee to extent of Rs.18,97,79,520/- has escaped assessment for the year under consideration. Therefore, I am satisfied that it is a fit case for initiating proceedings u/s. 147 of the Act. 2.10 Thus, from the aforesaid, the Assessing Officer has come to the conclusion that he has reason to believe that the income of the assessee to the extent of Rs.18,97,79,520/- has escaped assessment for the year under consideration. 2.11 To the aforesaid reasons, the writ applicant lodged its objections dated 23.06.2021. In the objections, two things have been highlighted as under: "2.2 Please note that assesse is not having license to deal with foreign remittances; so assessee bank on its own cannot make any foreign remittance. Further ....
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....imited transferred the amount to Mili Corporation and Yashoda Enterprises respectively. According to Mr. Bhatt, Mili Corporation and Yashoda Enterprises in turn transferred the amount to one Shimmer Exim Private Limited. The Shimmer Exim Private Limited in turn is said to have transferred the amount to various foreign countries through the ICICI Bank Limited. This is what Mr. Bhatt has to explain as regards the transactions for which the Assessing Officer proposes to reopen the assessment for the A.Y. 2014-15. 7. The first and the foremost thing we take notice of is that whatever has been explained by Mr. Bhatt on the basis of the three documents does not figure in the reasons assigned by the Assessing Officer. Therefore, in such circumstances, the writ applicant could be said to have had no opportunity to offer its explanation as regards the transactions which Mr. Bhatt is talking about. The reasons assigned by the Assessing Officer are altogether on a different footing. The writ applicant in its own way has tried to explain while putting forward its objections, however, we do not find any meaningful discussion in the order disposing of the objections. In fact, none of the obje....