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2016 (9) TMI 212 - AT - Income TaxReopening of assessment - investigation by Directorate of Income Tax (Investigation), New Delhi - accommodation entries provided - Held that:- Directorate of Income Tax (Investigation), New Delhi, has carried out enquiries in respect of the persons/companies engaged in the business of providing accommodation entries to various companies and these persons used to issue cheques in lieu of cash received after deducting their commission and the cheques were generally issued as share application money/unsecured loan. This was a general description of the modus operandi of accommodation entry but the Assessing Officer nowhere mentioned in the reasons recorded as what was stated by those entry operators in respect of the assessee. We find that even in the assessment order also the Assessing Officer has not given details what was stated by the so-called entry operators in respect of the entries related to the assessee. It was submitted by the assessee that no opportunity to cross-examine the entry operators was provided by the Assessing Officer. Further, from the table of the accommodations entries, which the assessee is said to have received, reproduced in the assessment order, we find that there are five instances, where the entries have been repeated. Assessing Officer has not applied his independent mind while recording the reasons in this case and, therefore, proceedings under section 147 of the Act initiated by way of issue of notice under section 148 of the Act are quashed.
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