TaxTMI 
TaxTMI 
2026 (4) TMI 1554
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....tion 250 of the Income Tax Act, 1961 (hereinafter referred to as the "Act") and relates to Assessment Year (A.Y.) 2014-15. 2. The grounds of appeal raised by the assessee are as under: "1. The Learned Commissioner of Income Tax Appeals has erred in law and in facts in confirming the reopening u/s 147 of the Income Tax Act, 1961." 2. The Learned Commissioner of income Tax Appeals has erred in law and in facts restricting the addition u/s 69A to the tune of Rs 43,39,445/ by estimating the suppressed profit to the extent of 12.5% of the purchases made from the bogus entities Le. Rs. 3,47,15,561/, as the suppressed profit element embedded in such purchases. 3. The appellant craves leave to add, amend, alter, edit, ....
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....on, the date of transaction, the name of party whom with such transaction was entered into. That there is no basis as to how the magical number of Rs. 3,47,15,561/- was derived. Reliance was placed on various judgments, as under, to the effect that reopening cannot be resorted to on the basis of vague reasons: 1. Paresh Babubhai Bahalani R/Special Civil Application No. 19280 of 2021 2. Jambuwala Commodities Private Limited R/Special Civil Application No. 2488 of 2022. 3. Surani Steel Tubes Limited R/Special Civil Application No. 13245 of 2021 4. Ashishbhai Jashwantbhai Desai HUF R/Special Civil Application No.1998 of 2022 5. Kapil Arun Agrawal ITA No. 672/And/2025 6. Agneshkumar Ivrajbha....
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....4/12/2016 at the office premises of Shri Shripal Vora. During the course of Search, several incriminating documents were found and seized which reveal that assessee was involved in accommodation entry business and was charging commission towards the same The beneficiaries of these accommodation entries have been identified based on bank statements of the paper concerns through whom such entries were given The list of beneficianes containing details of accommodation entry provider by whom various type of accommodation entnes were provided in the year under consideration with details of payment made by entry provider to beneficiary and payment made to entry provider to beneficiary The assessee is one of the beneficiary of accommodation entry ....
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....561/- has escaped assessment within the meaning of section 147 of the I.T. Act. 6 Basis of forming reason to believe and details of escapement of income: In this case, the assessee has filed his return of income for A.Y. 2014-15 on 29.11.2014. The assessment in this case was completed u/s. 143(3) on 29.9.2016 on assessed income of Rs. 5,20,960/-. Information made available with this office through Insight Portal alongwith Report of a Survey action under section 133A of the IT Act, 1961 was carried out on 14/12/2016 at the office premises of Shri Shripal Vora, During the course of Search, several incriminating documents were found and seized which reveal that assessee was involved in accommodation entry business and was cha....
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....ted to be a beneficiary, mentioning the exact nature of the transaction through which the accommodation entry was taken, through which entity of Sri Shripal Vora the alleged entry was provided, find no mention in the entire reasons. It is clear therefore that the AO has not applied his mind at all to the information available with him nor to the facts relating to the assessee, but has in fact brought out a very general reason for the reopening the case of the assessee. The AO himself was not aware of the form and manner in which the assessee had availed accommodation entry from Sri Shripal Vora and through which entities. The said reasons, we have no hesitation, therefore, are not sufficient for a valid assumption of jurisdiction to frame a....