TaxTMI 
TaxTMI 
2025 (5) TMI 1855
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....147 of the Act without the precedent conditions being fulfilled by the ld. Assessing Officer. 03. The facts in brief are that the assessee filed the return of income u/s 139(1) of the Act on 23.09.2009, declaring nil income and loss of Rs.7,231. The case of the assessee was reopened u/s 147 of the Income-tax Act, 1961 (the Act) after receiving information from the investigation wing that the assessee is a beneficiary of accommodation entries to the tune of Rs. 1,70,00,000/-. In this case, the assessment was also framed u/s 147/143(3) of the Act for A.Y. 2008-09, during which the assessee had failed to offer satisfactory explanation about the nature and source of credit sums credited in its Axis Bank Account No.0008846 and during A.Y. 2009-....
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....ead as follows: - "During the course of the proceeding under section 147/ 143(3) of the Income Tax Act, 1961 it is seen that the assessee failed to offer satisfactory explanation about the nature and sources of credit of sums-credited to the bank account No- 191010200008046 with Axis Bank (Ay. 2008-09) During the financial year 2008-09 (Α.Υ. 2009-10) a sum of Rs. 1.70 Crores was credited to said bank account, the sources of which is also not clear. There was a Search & Seizure operation carried out by the Investigation Wing at the business premises of Sri Santosh Kumar Shah at 9/12, Lal Bazar Street, Block-E, 2nd floor, Kolkata-700 001 and at his residence at 22, Lake Town, Block-B. Flat No. 4A & SA, Kolkata-700 089. D....
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....ank accounts maintained by him in the name of various companies/individuals and after layering the money into some of the bank accounts, the money was paid as share capital or loan to the party paid the money in cash. The total deposits made into the bank accounts maintained by Shri Shah and his associates piled up to 1102.62 crores. This fact was admitted before the Settlement Commission. As such I have reason to believe that the assessee's income chargeable to tax has escaped assessment and this is a fit case for invoking the provisions of Section 147 of the Income Tax Act, 1961 Accordingly, proposal is submitted before the Ld. Pr.CIT, Kolkata 2, Kolkata for his kind approval, if satisfied." 06. It is apparent from the perusal of....
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....s escaped assessment, meaning thereby the ld. AO has not recorded his satisfaction and reasons are vague, unambiguous and scanty. We note that no details/information have been recorded as from whom the money was received and when it was received. In our opinion the re-assessment can be not be made on vague, scanty and ambiguous reasons recorded. The case of the assessee is squarely covered by the decision of Hon'ble Delhi High court in the CIT vs. Insecticides (India) Ltd. (supra). Further, it is a case borrowed satisfaction and nonapplication of mind by the ld. AO too. We observe that the ld. AO has simply, after extracting the report from the investigation wing, noted that income of the assessee has escaped assessment. For the sake of rea....
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....a total number of 404 bank accounts in the name of various companies were found. As a result of the search, it was emerged that the bank accounts were used as a tool of layering the transactions from receiving cash and issuing cheques. The bank account sated as above is one out of 404 bank account found in the premises of Santosh Kumar Shah during the course of search operation conducted. Sri Shah and his associates have admitted in the statement recorded on oath that they used to use all accounts found, for accommodation entries. The previous address of the assessee company was the address of Santosh Kumar shah as well. The modus operandi has also been explained. The parties wanted for accommodation entries of share capital or loan p....