2023 (2) TMI 415

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....O even when the Assessment Order itself is bad in law for the reason that the Ld. AO did not provide the appellant the copy of the "reasons to believe" recorded by it before issuing of notice u/s148. v. For that the Ld CIT(A) erred in confirming the action of AO while the assessment order passed by the Ld. AO is totally alien to the information received from DDIT(Inv) whereas the Ld. AO without going through the statement of the appellant recorded by the DDIT (Inv) Unit 1(1)/Kolkata proceeded to consider the entire deposits as unexplained cash credit. As the very information based upon which the reassessment proceedings were initiated have not been relied upon by the AO himself, the entire reassessment proceedings are null and void. vi. For that the Ld. CIT(A) erred in confirming the action of Assessing Officer in making ad hoc addition of Rs. 17,16,91,393/- as undisclosed income. vii. For that the Ld CIT(A) erred in confirming the action of the Ld AO whereas the addition made by the Ld. Assessing Officer is arbitrary and excessive. The Ld Assessing Officer did not consider the submission of the appellant that he is a person of no means and that he is har....

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....accommodation entries whereby the cash/cheques were received from the parties were deposited in the said bank account and those cheques were issued in such names as desired by the said parties on whose behest such account were opened. The assessee also submitted that assessee did not maintain any books of account for such transaction during the course of assessment proceedings before the ld. AO. The ld. AO receiving such information and another show cause notice was issued upon the assessee through which the AO asked the assessee to furnish such names of person for the whom the assessee has been working along with their PAN and postal address with pin. In response to such notice issued by the AO, the assessee had filed a written submission by stating that the account was opened at the instruction of one Mr. Arun Agarwal and provided his address known to the assessee. On the basis of such information, the ld. AO depute departmental inspector to serve the notice u/s 131 issued to Mr. Arun Agarwal for his personal deposition, the Department Inspector appended by the ld. AO several times attempt to furnish the copy of the same to Mr. Arun Agarwal but he could not succeed. In such a sit....

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....as been sent to the office of the concerned authority along with its annexure which are part of record. The entire file was send to the concerned authority along with letter of ITO Burdwan dated 06-03-2012 which was supported by letters of investigation wing from where it was clear that the reasons recorded by the AO was based on concrete material which was received from FIU and then inquired by investigation wing. As a matter of fact no return was filled by the appellant for the year where as transaction reported from single party was of Rs.40,59,435/- which itself is sufficient to accord sanction for reopening of the case. Therefore the grounds of the assessee that the sanction of reopening was given mechanically is not true. The sanction has been granted in the back ground of the facts and information which were part of the approval folder. Hence the ground of the appellant is hereby dismissed." 6. Similarly regarding the information providing of reasons recorded, the ld. CIT(A) stated in his order that order-sheet of ld. AO dated 19.02.2015 shows that the copy of reasons recorded has been provided to the AR of the assessee. The ld. CIT(A) also stated that there was no restri....

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....9.02.2015, copy of the reasons recorded has been provided to the ld. AR. Therefore, we are of the considered view that ground nos. 1 to 5 are taken by the assessee are not sustainable accordingly we dismiss the ground taken by the assessee. 8. The remaining ground 6 to 10 are inter connected, therefore, we are going to consider the same all the five grounds together. The ld. counsel for the assessee submitted that the action of the AO in making adhoc addition of Rs. 17,16,91,393/- is arbitrarily and excessive and the authorities below did not consider the submission of the assessee that assessee has no means and he has hardly able to earn his livelihood for his family and in such circumstances to earn Rs. 1 lakh is too big for him. Besides that the ld. AR also submitted before us that the appellant has made a true statement before the ld. AO stating the name of landing for accommodation entry. Therefore, the addition made in the hands of assessee needed to be deleted. On the other hand, the ld. DR relied upon the orders passed by the ld. CIT(A) stating that he has passed a well reasoned order which needs to be upheld by the Tribunal. 9. We after hearing the rival submission o....