2013 (5) TMI 691 - DELHI HIGH COURT

Re opening of assessment - bogus entries/transactions - Tribunal held the proceedings as invalid - Held that:- AO has merely stated that it has been informed by the Director of Income-tax (Inv.), New Delhi that assessee company was involved in giving and taking bogus entries/transactions but nowhere mentioned as to who had given bogus entries/transactions to the assessee or to whom the assessee had given bogus entries or transactions. It is also nowhere mentioned as to on which dates and through which mode the bogus entries and transactions were made by the assessee. What was the information given by the Director of Income-tax (Inv.), New Delhi, vide letter dated 16.06.2006 has also not been mentioned.

The AO did not mention the details of transactions that represented unexplained income of the assessee company. The reasons recorded by the AO do not disclose the AO’s mind as to what was the nature and amount of transaction or entries, which had been given or taken by the assessee in the relevant year. Thus no addition can be made to those reasons - initiation of proceedings u/s 147 was not valid - in favour of assessee.