2026 (4) TMI 1189

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....re him against the order dated 25.11.2019 passed u/s 147 r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') by the DCIT, Central Circle, Karnal (hereinafter referred to as the Ld. AO, for short). 2. Heard and perused the records. The assessee is a Private Limited Company engaged in the business of manufacturing of textile and rags. The appellant's name was changed to M/s. RG Home Furnishings Pvt. Ltd. and earlier it was known as Akash Home Furnishing Pvt. Ltd. and even earlier it was named as GSM Spuntex Pvt. Ltd. The assessee filed its return of income on 22.08.2012. The case was originally assessed u/s 143(3) of the Act, wherein the ld. AO has issued Notices u/s 133(6) to the directors of M/s Simplex Commo....

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....er, in the impugned assessment order passed u/s 147, the ld. AO has made the addition of Rs. 1 crore on account of amount received from M/s Simplex Commosale Pvt. Ltd. u/s 68 of the Act. 4. Ld. Counsel has primarily stressed at outset that the reasons as stand recorded show utter non application of mind. It was submitted that once established that no amount what so ever was received from M/s Super Commotrade Pvt. Ltd. then it shows that if for once ld. AO had gone through the assessment records it would have come up that amount were received from Simplex Commosale Pvt. Ltd., and already examined in assessment u/s 143(3) of the Act 4.1 Ld. DR relied the reasons and has defended the reasons by submitting that reasons are quite descripti....

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....ing as sacrosanct. The investigation report formed the sole basis for reopening the case, with no evidence of any independent inquiry by the Ld. AO. The reasons as recorded do not contain any independent analysis of the material considered to say there was live link between information and the escapement. Ld. AO did not specify date or nature of alleged transaction. The ld. AO has passed the assessment order u/s 143(3) of the Act on 27.02.2015 wherein the ld. AO has not made any adverse inference in respect of the amount received from M/s Simplex Commosale Pvt. Ltd. and if records were examined before recording reasons AO would have definitely examined that the transaction is involves two entities at different stages. But continue to be sep....