2025 (10) TMI 296

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....154/14-15, 103/17-18/68/14-15 and 10169/160/CIT(A)-7/Del/2017-18 arising out of the appeals before it against the orders dated 08.03.2013, 20.01.2013 and 24.11.2017, respectively, passed u/s 147/143(3) of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the ITO, Ward 15(1)/Ward 20(3), New Delhi (hereinafter referred to as the Ld. AO), respectively. 2. At the time of hearing, the ld. AR has primarily argued that grounds No. 2 and 3 in ITA No. 7968/Del/2019 which also covers the similar grounds raised in the other two appeals. As for convenience, the grounds No. 1 to 3 in the appeal of the assessee for AY 2005-06 are reproduced below:- "1. That the Hon'ble Commissioner of Income Tax (Appeals) has erre....

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.... of investigation wing. What we find is that at page Nos. 334 to 336 the copy of reasons recorded u/s 147 is provided. The same is in fact the extract of the reasons submitted for obtaining approval of the competent authority u/s 151 of the Act. After going through the same and the reasons recorded in the two other years, we find that the different AOs have written and narrated the reasons verbatim the same. It is very much apparent from the reasons that it is merely a narration of the content of information received from the Investigation Wing. The reasons mentioned about escapement of income of Rs. 45 lakhs on the basis of accommodation entries. However, what was the nature of accommodation entry has not been mentioned. Thus, th....

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....ioned and correlated the assessee's impugned transaction; iii) existence of incriminating material (if any) unearthed from said search operation u/s 132 of the Act; iv) correlation of the said incriminating material to assessee's subject transaction; v) inquiry, if any, made by the AO on the subject matter with respect to the information received by the AO from another wing prior to the reopening of case u/s 148 of the Act; vi) any specific and particular tangible material to form valid belief to implicate the assessee's transaction as accommodation entry; and vii) live nexus between the search on Shri Aseem Gupta and the inference to hold the assessee's transaction as accommodation entry are left to guess work and nothing i....

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....DR has filed a report from the AO wherein the AO has submitted that there was no such retraction and even if there was such retraction that was delayed. However, what we find is that at page 83 of the paper book, there is a copy of submission made by Shri Aseem Gupta dated 25.11.2011 to ACIT, Central Circle-9, New Delhi, wherein he has mentioned that the statement dated 23.11.2011 was made by him under influence and citing reasons he has withdrawn the statement. Now, at the time of recording of the reasons, this statement of Aseem Gupta was very much part of the record of the Department, but, seems to have been not considered. The ld. AR has supplied before us a decision in the case of M/s Sungrow Impex Private Ltd. vs. ITO, ITA No. 41....