2022 (7) TMI 1503

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....r dated 17th December, 2021 passed by the Income Tax Appellate Tribunal, "A" Bench, Kolkata (in short the 'Tribunal') in ITA No.2364/Kol/2019 and CO No.46/Kol/2019 for the assessment year 2014-15. The revenue has raised the following substantial question of law for consideration: i) Whether the Learned Tribunal has committed substantial error in law in holding that the jurisdictional requirement 'reason to believe' (escapement of the income) had not been met in the reason recorded by the assessing officer and further allowing the cross objection of the assessee? ii) Whether the Learned Tribunal has committed substantial error in law in dismissing the grounds of the revenue on technical point that the reassessment procee....

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....allenging the same the revenue has filed the present appeal. At the first blush, one gets an information and say that the respondent/assessee had transactions with the said company. However, on scrutiny of the facts it appears to be otherwise. This has been clearly brought out by the CIT(A) in its order. We quote the relevant portion of the said order which reads as follows: "I find that the assessee complied with all the requisitions vide letter dated 20.12.2018. The assessee also enclosed the coy of the agreement with the said Bridge and Building Construction Co. Ltd. along with the weekly reports, dispatch advises of the Railways and the copies of the bills raised by the said Bridge and Building Construction Co. Ltd. The name....

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....ee. The assessee provided services to the railways and other big companies were involved and confirmed that services were actually provided. Further, the CIT(A) noted that there is no evidence to show that agents were related to the assessee and the commission paid has come back to the assessee and, therefore, concluded that it cannot be said that the commission paid was not genuine. With regard to the correctness of the reopening proceedings, after elaborating taking note of the facts, the CIT(A) pointed out that in the statement recorded from Shri Jindal on 29th October, 2014, he refers only to account of Axis Bank for the purpose of accounting; whereas the account from which the bank transactions were made by the assessee with M/s. Bridg....