TaxTMI 
TaxTMI 
2026 (8) TMI 40
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.... Act'). 2. The revenue has raised the following grounds in appeal as under: a. Whether the Ld. CIT(A) has justified in allowing the appeal of the assessee only on technical ground and not considering the merit of the assessment order. b. The ld. CIT(A) has not appreciated the fact that the subject Mr. Himanshu Verma is only entry provider and will-fully involved in the syndicate for organized accommodation entries through there associated entities since long ago despite of many search proceedings conducted on them, hence, these entities are habitually involved in the racket without any fear of law in force. c. The Ld. CIT(A) has not appreciated the fact that the non-descript entities involved with Sh. Himanshu ....
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....to the assessee on 30.3.2023 by the ITO, Ward 18(3), New Delhi and assessee was requested to file its return of income u/s. 148 of the Act. In response to notice u/s. 148 of the Act, the assessee has filed its return of income under section 148 on 31.3.2023 declaring total income of Rs. 13,660/-. Further notice u/s. 143(2) of the Act was also issued through ITBA to the assessee on 27.6.2023. Notice u/s. 142(1) of the Act was also issued through ITBA. In compliance to the above statutory notices issued, the assessee filed submissions through e-filing portal which was examined. The case of the assessee was centralized with CC-25, Delhi. On 7.3.2024, a notice was issued to the assessee asking to file the details in respect of transaction of Rs....
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....itions of Rs. 2,09,40,000/- u/s. 69A of the Act made by AO on account of availing accommodation entries in the form of payment made to entities controlled by Sh. Himanshu Verma and Sh. Deepak Agarwal. The appellant argued that the impugned assessment order is bad in law as the information relied upon by AO and satisfaction note drawn for initiating reassessment proceedings u/s. 147 of the Act is vague and based on suspicion only. 5.1 The appellant submitted summarized detail sheet of all receipt and payment transaction undertaken by it during the year. To substantiate the same, copies of relevant bank statements of all its operative accounts are also furnished by appellant. It is noted that during the year under consideration, appe....
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....t which entities are related with appellant in the execution of said transaction due to which credibility of the information could not be established. 5.4 The position of law is very clear on this issue that reassessment proceedings under section 147 of the Act must be grounded in valid reasons recorded by the AO. If no valid reason is recorded for reopening of an assessment, or if the reasons are found to be general, vague, or based solely on suspicion without tangible material, then the reassessment proceedings are liable to be quashed as void ab intio. 5.5 In these circumstances, I find that the assessment proceedings initiated and completed in the instant case on the basis of a general recording of reason and without e....
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....ndertaken any transaction with any of the entities listed by AO in assessment order after relying upon the investigation report of non-descript or paper companies, during the search operation u/s. 132 of the Act dated 17.11.2021 on Galaxy group and related persons. The assessee also submitted copy of audited financials, which further corroborated the fact that the assessee has no business activity or not having any borrowing or repayment with the listed entities in the assessment order. It is noted that the assessment order was passed without any incriminating material and valid reasons recorded. We note from the perusal of the copy of Performa drawn for obtaining sanction u/s. 151 of the Act, that in the information received provided to co....