TaxTMI 
TaxTMI 
2022 (9) TMI 182
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....ssessee are as under:- "1. The Id. CIT(A) erred in facts and law in not treating the Assessment Order passed U/s 147 r.w.s. 143(3) of the Act as invalid, bad in law and in violation of principles of natural justice. 2. (a) The Id. CIT (A) erred in facts and law in confirming the addition of Rs,65,00,000/- on account of loan received u/s. 68 made by the Id. Assessing Officer as unexplained cash credit. (b) The Id. CIT (A) erred in facts and law in not appreciating the fact that the identity of the payer, genuineness of the transaction and capacity of the payer were duly established. (c) The Id. CIT (A) and Id. Assessing Officer failed to provide any report of the inspector that the alleged lender is not fo....
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.... Seven Star Gems Pvt. Ltd. 3. M/s. Seven Star Gems Pvt. Ltd. is a company operated by Sh. Praveen Jain. Investigation wing of IT Department has conducted search and seizure action in the case of Praveen Kumar Jain Group. During the course of search it is established that Shri Praveen Kumar Jain indulged in providing accommodation entries like bogus purchases, sales, unsecured loans. Share capital through the companies operated by him which includes M/s. Seven Star Gems Pvt. Ltd. 4. From the appraisal report it is revealed that the assessee has obtained accommodation entry of unsecured loan of Rs.65,00,OOO/- during the period relevant to AY 2009-10. The detail of information regarding accommodation entry is as follows: S....
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....ar Jain group which indulged in providing accommodation entries in the nature of bogus purchases, sales, unsecured loans, share capitals, etc. operated by Shri Pravinkumar Jain which also includes M/s Seven Stars Gems Pvt Ltd. The Assessing Officer had reopened the assessment of the assessee on the reason to believe that income chargeable to tax as specified in the accommodation entry of unsecured loan of Rs.65 lakhs from the aforesaid party has escaped assessment for the impugned year as per the provisions of section 147 of the I.T. Act. The Assessing Officer had specified that there was failure on the part of the assessee to disclose true income of Rs.65,00,000/- which according to the Assessing Officer has escaped assessment and that the....
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....ection (1) of section 147 or section 148 or (b) to disclose fully and truly all material facts necessary for his assessment for that assessment year. The Ld.AR contended that the assessee has filed its return of income and has also disclosed the impugned amount for that year. The Ld.AR prayed that the order passed under section 143(3) r.w.s. 147 is to be treated as bad in law. 5. The Ld.DR, on the other hand, alleged that the assessee has failed to prove the creditworthiness of the parties from whom the assessee has availed the unsecured loan and the ld.DR relied on the order of the lower authorities. 6. We have heard the learned representatives and perused the materials on record. Upon perusal of the reasons for reopening as stated b....
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....x Co vs CIT [(2001) 116 Taxman 491(SC)] Assessment order must be made after assessee has been given a reasonable opportunity of being heard. 5 H.K. Pujara Builders vs Add CIT-21(1) [ITA No.2034/Mum/2014](ITAT Mumbai) Where the appellant has discharged the initial onus placed upon it, addition u/s 68 cannot be made merely because interest had not been charged by the lenders 7. From the above decisions, we infer that the Assessing Officer has the jurisdiction to reopen an assessment only when he has reason to believe that income chargeable to tax has escaped assessment. This reason must be on concrete facts. In the present case in hand, it is observed that the Assessing Officer was of the view that the assessee has failed to fi....