TaxTMI 
TaxTMI 
2015 (11) TMI 1886
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....erred to by him while recording reasons for reopening. It was submitted that without forming a prima facie opinion, on the basis of such material, it is not correct on the part of the A.O. to record reasons that he has reason to believe that income has escaped assessment and reopen the assessments. The Ld. Sr.D.R. strongly opposed these contentions. Both the parties relied on various case laws. 3. After hearing rival contentions I hold as follows. 4. The reasons for reopening recorded by the A.O. are as follows. "Information is received from the Investigation Wing of the Income Tax Dept. That M/s Perfect Capital Services Ltd. is a beneficiary of accommodation entries received from certain established entry operators identified by the In....
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....the above A.Y. the income chargeable to tax to the extent of accommodation entry mentioned above which is Rs.3,50,000/- has escaped assessment within the meaning of section 147 of the Act. To bring to tax the income which has escaped assessment, I propose to issue notice u/s 148 of the Income Tax Act, 1961. Since, four years has expired from the end of the relevant A.Y. and no scrutiny assessment was completed u/s 143(3) in this case for the said A.Y. the reasons recorded above for the purpose of reopening of assessment is put up kind satisfaction of ACIT, Range 14, N.Del in terms of proviso of S.151(2) of the Income Tax Act 1961." 4.1. The Hon'ble Delhi High Court in the case of Principal Commissioner of Income Tax vs. G & G Pharma Indi....
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....w of the Court, in light of the law explained with sufficient clarity by the Supreme Court in the decisions discussed hereinbefore, the basic requirement that the AO must apply his mind to the materials in order to have reasons to believe that the income of the Assessee escaped assessment is missing in the present case. Mr. Sawhney took the Court through the order of the CIT(A) to show how the CIT (A) discussed the materials produced during the hearing of the appeal. The Court would like to observe that this is in the nature of a post mortem exercise after the event of reopening of the assessment has taken place. While the CIT may have proceeded on the basis that the reopening of the assessment was valid, this does not satisfy the require....