TaxTMI 
TaxTMI 
2022 (11) TMI 892
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.... to the assessee. 3) That the Ld. AO had gone ahead with the Assessment without replying on Objection raised and ignoring the Affidavit submitted. 4) That under the facts and circumstances of the case the Ld. A.O. has erred under the law by making assessment on the non-existent ground and improving upon the reasons recorded u/s 148 of the Act. It is pertinent to note that where the reasons are factually incorrect, the notice and the assessment thereon need to be vitiated. [Sugar Chand v/s ITO 105 ITR 743 and Govinda V/s ITO 109 ITR 370]. In fact, that the figure of Rs.15,00,000/- as alleged to be main transaction in the report of Investigation wing has been found to be incorrect and no addition made on this ground, the ord....
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....ordingly, notice was issued. AO found that during the year, the assessee company had not done any business activities but he noted that the principal business activity was to provide Cold Storage Services and assessee also filed the copy of the bank account nos.37773 and 53850 maintained with Punjab National Bank. Assessee had also given information of unsecured loans. An affidavit of the Director stating that the assessee company does not have any transaction with White Collar Management Pvt. Ltd. during FY 2010-11 was also furnished. AO noted that the report of the Investigation Wing contained the list of beneficiaries in which the name of the assessee company also appeared that it has received an amount of Rs.15,00,000/- from White Colla....
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....ound that reasons to believe did not belong to the assessee and AO had not given reply to the objections raised and merits were also challenged. As regards assessee's plea that reasons do not belong to the assessee, ld. CIT (A) was of the opinion that the satisfaction note referred to the investigation wing where accommodation entries has been taken by M/s. Goyal Grain Merchants Pvt. Ltd. (PAN : AACCG5042R) during AY 2011-12 amounting to Rs.15,00,000/- from one of the Himanshu Group company i.e. White Collar Management Pvt. Ltd.. However, the name of the assessee company was M/s. Golden Century Foods Products Pvt. Ltd. having PAN AADCG5937A and the loan was not taken from the said White Collar Management Pvt. Ltd.. Ld. CIT (A) held that tho....
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.... Pvt. Ltd.. While in the case of the assessee the name of the assessee is Golden Century Food Products Pvt. Ltd. and after examination of the bank statement, AO has accepted that there was no entry of Rs.15,00,000/-. However, other small loans were received by the assessee amounting to Rs.26,95,000/-. This has been presumed to be encompassing Rs.15,00,000/-. There is no basis whatsoever for this hypothesis. The name of the party and PAN number in the information received is totally different that of the assessee. Hence, by no stretch of imagination, it can be said that it is a curable defect. In my considered opinion, the defect is fatal. Furthermore, assessee's objections have not been disposed off. This is another flaw which is fatal and ....