TaxTMI 
TaxTMI 
2024 (6) TMI 425
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.... taken 15 grounds of appeal. However, its grievances revolve around two issues, namely- (a) whether reopening of the assessment by issuance of a notice under section 148 is valid or not; (b) whether an addition of Rs. 94,50,000/- deserves to be made to the total income of the assessee as unexplained cash credit under section 68 of the Income Tax Act or not. 3. Brief facts of the case are that the assessee has filed its return of income on 30.09.2011 declaring total income of Rs. 10,56,550/-. This return was processed under section 143(1) on 14.01.2012 determining total income of assessee at Rs. 10,56,550/-. The ld. Assessing Officer thereafter reopened the assessment by issuance of a notice under section 148 on 27.03.20....
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.... the assessment order. For the facility of reference, we deem it appropriate to take note of those reasons, which read as under:- "This office is in the possession of the information in respect of you pertaining to financial year 2010-11 (A.Y. 2011-12) where you were the ultimate beneficiary of unaccounted money to the extent of Rs. 94,50,000/- which was routed through following companies: SI. Name of the company Bank Name Bank A/ c No. 1 Nextgen Tradecom Pvt. Ltd. Axis Bank 255010200014003 2. Rajlaxmi Dealcom Pvt. Ltd. Axis Bank 255010200013934 3. Vaishnawi Trade (India) Axis Bank 143010200037590 4. Divy Prakash Suppliers Pvt. Ltd. Axis Bank 910020035930581 5. Shobh....
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....here was no other financial rationale behind such transactions. On examination of the bank statements of the concerns which was immediately transfer to the interlink accounts and then ultimately to the beneficiary's account. Your company is one of the such beneficiary, who received an amount of Rs. 94,50,000/- during the previous year 2010-11 relevant to the A.Y. 2011-12. 7. The ld. Counsel for the assessee while taking us through the reasons submitted that in the reasons, the ld. Assessing Officer has made a reference to 13 Companies but the assessee has not dealt with all these companies. It has received alleged share capital from three parties, namely Nextgen Tradecom Pvt. Ltd. (Rs. 35,00,000/-), Rajlaxmi Dealcom Pvt. Ltd. (R....
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....2022 Dated:- 25th JANUARY 2024 5 M/S. PASARI CASTING AND ROLLING MILLS PRIVATE LTD Vs. INCOME-TAX DEPARTMENT JHARKHAND HIGH COURT W. P. (T) No. 1850 of 2022 Dated:- 25th JANUARY 2024 8. The ld. Sr. D.R., on the other hand, contended that reasons are specific. The ld. Assessing Officer has obtained the information from the MCA data and ITD module of the Department, which demonstrate these Companies as paper/shell companies having no real existence and business activities. The ld. Assessing Officer believed that they are involved in providing accommodation entries in the form of bogus share capital/share premium, pre-arranged bogus LTCG/STCG and unsecured loans etc. He relied upon the orders of Revenue Authorities in this regar....
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....the common thread is that a material/information should be possessed by an ld. A.O. of such a degree, which can goad a prudent man to believe that income has escaped assessment. Therefore, for the sake of brevity, we do not deem it necessary to recite and recapitulate the discussion made in each judgment brought to our notice by the ld. Counsel for the assessee. The meaning and construction of section 147 has been expounded in all judgments that the formation of belief made by the ld. Assessing Officer should have a live nexus between the information possessed by him, vis-à-vis his belief. 11. In the light of above, let us evaluate the information possessed by the ld. Assessing Officer, which has been reproduced by us. A perusal o....
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....assessee has filed return and asked for reasons for reopening, but nowhere his actual application of mind is depicted. It is pertinent to note that the information has been reproduced in inadvertent commas, on this information as to how he has applied his mind is not discernable from the reasons. He has just got certain portion of information from somewhere and pasted in the reasons reproduced in the assessment order. After this pasting the next line reads, "subsequently, in response to notice", shows, to our mind, there is no analysis of the ld. Assessing Officer. We try to evaluate the operative force of reasoning in the mind of Assessing Officer, even with the help of revenue observations reproduced on pages no. 3, 4 & 5 (which is an asp....