TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 1238
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....n facts and in law. 2. The Ld. CIT(A) erred in upholding the reasons recorded u/s 147 by the A.O., which do not confirm to the statutory provision and the decided cases. 3. The Id. CIT(A) erred in not holding that the A.O. did not assume jurisdiction to issue notice u/s 148 as per law. 4. The Ld. CIT(A) erred in not holding that the order passed without assuming the jurisdiction to issue notice as per law was bad in law. 5. In any case the Id. CIT(A) erred in upholding the assessment of income at Rs. 3.70 Crore against nil income returned by the assessee. 6. The orders passed by the Id. CIT(A) and A.O. are based on conjectures and summa rises and therefore, they deserve to be quashed. 7. The Ld. CIT(A) erred in upholding the lev....
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....were routed through banks do not have any underlying or actual business transactions. With the above reasons recorded in the reasons, the Assessing Officer recorded and found reasons for believe in para 5 of the reasons recorded as per which, on perusal of various seized documents clearly show that the name of the assessee company appears on this document has taken accommodation entry amounting to Rs. 3.7 crores from S.K. Jain group of companies. Based on that, at para 6.1 of the reasons recorded, AO observed that the assessee company has taken accommodation entries in the form of share capital/premium/ application/loan from the entry providing companies being controlled by S.K. Jain. As per the information available on record i.e. ITR file....
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....es which were purchased by the assessee in the earlier years and in this year, all such shares were sold along with other shares. Schedule 4 of the accounts shows that opening balance of stock-in-trade of Rs. 4.56 crores. The purchases in this year stand at about Rs. 2.87 crores. The opening stock contained the share of the value of Rs. 4.56 crores which included the value of shares of Rs. 2.45 crores mentioned in the reasons recorded. Further the current year purchases of such stock amounted to Rs. 1.25 crores. As mentioned before, all such shares along with others were sold in this year for about Rs. 7.42 crores. Further, it was submitted that it may not be out of place to mention that the transaction in such shares led to profit of Rs. 1....
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....o believe will not apply in the case of the assessee since the Assessing Officer has to form an opinion not belief before initiating proceedings of reopening of assessment. Further he brought to our notice page 13 of the assessment order wherein the Assessing Officer observed and the reply of the assessee company has been considered. It is seen that as on 31.03.2008, assessee company had stock-in-trade amounting to Rs. 4.55 crores which reduced to nil as on 31.03.2009. It is also seen that as per the copies of purchase/sale deals furnished by the assessee, the assessee had sold these stock-in-trade to various parties mentioned in the assessment order during FY 2008-09 relating to AY 2009-10. He submitted that the above findings of the Asses....
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....ssee is beneficiary of accommodation entry received through entities controlled by Jain Brothers in the form of accommodation entries to the extent of Rs. 3.6 crores by way of share capital/premium/application/loan. However, the assessee has filed objections before the Assessing Officer denying the above transactions and brought to his knowledge that assessee has only sold the shares holding by it as opening stock of about Rs. 4.56 crores and purchases were made during the impugned year of Rs. 2.87 crores only and further intimated that current year purchases of such alleged shares amounted to Rs. 1.25 crores. All the abovesaid shares along with others were sold during the current assessment year for about Rs. 7.24 crores. This factual matr....