TaxTMI 
TaxTMI 
2025 (2) TMI 229
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....43(3)/147 of the Act. 2. The assessee has raised various grounds of appeal. The grievance of the assessee is twofold, firstly on the legal issue challenging the validity of reopening proceedings contending them to be bad in law and based on borrowed satisfaction without establishing any tangible nexus between the information received and belief formed, secondly, on the merits of the case that the sum of Rs. 10.00 lakh received during the year was through banking channel and the same was utilised for purchasing Equity Shares and thus the transaction is genuine and addition made as unexplained cash credit u/s. 68 of the Act is uncalled for. 3. Facts of the case in brief are that the assessee is a Private Limited company engaged in the b....
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....es. 7. I have heard the rival submissions made by the parties and perused the record placed before me. The assessee has raised the legal issue challenging the validity of re-assessment proceedings. The reasons recorded for reopening the assessee's case u/s. 148 of the Act read as under : "Reason of Re-opening u/s. 148 of the I.T.Act 1961 in the case of Shroff Properties (Pvt.) Ltd. for Asstt. Yr. 2010-11 (PAN: AANCS3422Q). An information received from Credible sources that 31 bank accounts were opened with Indusind bank, stock Exchange Branch kolkata in the Individual, properitorship, firm and Private limited wherein it it was observed that the huge cash were being deposited in these accounts followed by immediate trans....
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....observed that in the reasons recorded that most of these companies are Jama Kharchi companies (paper companies) and that the assessee is also one of them. Ld. AO had not made efforts to give that detail of the companies through which the assessee has received the alleged sum, the nature of transaction whether such transaction has already been declared in the audited balance sheet filed by the assessee. There is also no proper reason to believe which could show that the income has escaped assessment to the tune of Rs. 10.00 lakh. It is a clear case of borrowed satisfaction and the reopening is carried out without any tangible material in the possession of the AO. The case of the assessee has been opened after four years and there is no obser....
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....d not with M/s Nivyah Infrastructure & Telecom Services Ltd. The name of company "S.V.Electricals Ltd" had subsequently changed on 14.2.2012 to M/s Nivyah Infrastructure and Telecom Ltd. It had also pointed out in its objection that during the regular assessment proceedings, details of the petitioner's dealing in scrip namely "S.V.Electricals Ltd" had been submitted during the regular assessment proceedings. The objections primarily proceeds on the basis, that the reasons as recorded, display total non-application of mind while forming reason to believe, this as during the relevant time, there was no company by the name "M/s Nivyah Infrastructure and Telecom Services Ltd" in which the petitioner could have dealt. The petitioner's ob....
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....ssued. 8. From the reasons, it is evident that the impugned notice has been issued on the basis of information received from the Deputy Collector RNG 6/7 5-wp3398.18 Income Tax (Investigation) alleging that M/s Nivyah Infrastructure & Telecom Services Ltd is a penny stock listed on the Bombay Stock Exchange and that the petitioner had dealt with the same leading to escapement of income. On receipt of information, the least that is expected of the Assessing Officer is to examine the same in the context of the facts of this case and satisfy himself whether the information received does prima facie lead to a reasonable belief that income chargeable to tax has escaped assessment. In this case, the reasons indicate that the Assessing Of....