TaxTMI 
TaxTMI 
2026 (2) TMI 355
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.... the Income-tax Act, 1961 [hereinafter referred to as "the Act"], for the Assessment Year (AY) 2015-16. 2. The assessee has raised the following grounds of appeal:- "1. The learned PCIT has erred in law and on facts in passing the order u/s.263 of the Act while considering the assessment order u/s.147 r.w.s 144 r.w.s 1448 of the Act passed by the FAO on 24/03/2022 for the year in question as erroneous and prejudicial to the revenue inasmuch as he had accepted the retuned income as assessed income while not making any additions as per the SCN issued and reasons recorded for reopening of the assessment. 2. The learned PCIT has erred in law and on facts for not considering/appreciating the submission of the appellant filed....
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..... 6. The learned PCIT has erred in giving the direction to set aside the assessment order passed by the FAO and to pass fresh assessment after verification of the facts of the case. Since the FAO has accepted the returned income as an assessed income and not made any addition after verification of facts of the case, the direction given by the learned PCIT to verify the same facts again is bad in law and consequentially order u/s 263 of the Act requires to be quashed. " 3. The brief facts of the case are that the assessee filed his return of income for the assessment year under consideration on 27.04.2016 declaring total income of Rs. 2,20,500/-. Subsequently, based on information received from Central Circle-1(2), Ahmedabad, rel....
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....h assessment after verification of the aforesaid issues. 7. Before us, the Ld. AR reiterated the grounds of appeal and submitted that the reassessment proceedings were initiated solely on the basis of alleged accommodation entries and that the Assessing Officer, after calling for details and examining the replies, rightly accepted the returned income. The Ld. AR further submitted that ownership of transactions by Shri Sanjay Shah was supported by affidavits and disclosures made during search and before the Settlement Commission, which were duly placed on record before the Assessing Officer. 8. The Ld. DR relied upon the impugned order and contended that failure to make addition in line with the reasons recorded itself establishes lack....
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.... contrived losses etc. The main persons of these paper entities in whose names the said concerns are registered, admitted by way of filing affidavits that the entities/ concerns are not carrying out genuine business activities and are engaged into providing accommodation entries through Jignesh S Shah. During the verification of the said seized information, the details of counter parties/beneficiaries were identified which included the name of the present assessee. The duo Jignesh Shah and Sanjay Shah also admitted being involved in providing accommodation entries including bogus LTCG and contrived losses. 3. On analysis of the information so received, it is noticed that the assessee is one of the beneficiaries who has obtained acc....
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....deration is deemed to be a case where income chargeable to tax has escaped assessment. 8. In this case, for A.Y. 2015-16, more than four years have lapsed from the end of assessment year under consideration. Therefore, it is requested that the satisfaction of Pr.CIT-1, Ahmedabad on the above reasons recorded to issue notice u/s. 148 of the Act may kindly be accorded, if deemed fit." 9.2 From the records, it is evident that the reassessment was reopened specifically on the issue of alleged accommodation entries. During reassessment proceedings, the Assessing Officer issued notices, called for explanations, and examined the evidences furnished by the assessee. The assessee placed on record affidavits and disclosures wherein Shri S....