TMI Blog2013 (8) TMI 818X X X X Extracts X X X X X X X X Extracts X X X X ..... in the assessment order, the Assessing Officer himself has given a different address than what was given in the notice under Section 148 - Notice was issued at the incorrect address and the same cannot be said to be valid issue of notice if the same is wrongly addressed – Decided against the Revenue. Sufficiency of reasons to be recorded for issuance of Notice u/s 148 – Held that:- Relying upon the judgment in the case of Sarthak Securities Co. P. Ltd [2010 (10) TMI 92 - DELHI HIGH COURT], it was held that only information received by the Assessing Officer was that M/s Aayushi Stock Brokers (P) Limited is found to be providing accommodation entries in the form of bogus share transactions, bogus share capital etc - Detail given is only with regard to name of the bank, ledger account number and amount. Even the nature of transactions is not given, much less to establish that the above transactions are in the nature of accommodation entries - Assessee has only sold the shares through M/s Aayushi Stock Brokers (P) Limited and the sale proceed has duly been considered while computing the income of the assessee for the assessment year under consideration - Reasons did not satisfy the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmodation entries of bogus share transactions, bogus share capital etc. But, it is not specified what was the exact transaction between the assessee and M/s Aayushi Stock Brokers (P) Limited. In the reasons recorded, only the name of the bank, ledger account number and the amount is given. Therefore, this only indicates some transactions between the assesse and M/s Aayushi Stock Brokers (P) Limited but, the same is not sufficient to form the belief of escapement of income. He clarified that the assessee has only sold the shares through M/s Aayushi Stock Brokers (P) Limited and the sale proceed has already been considered while computing the income of the assessee for AY 2001-02. He, therefore, stated that the notice issued under Section 148 is liable to be quashed. In support of this contention, he relied upon the following decisions:- (a) Signature Hotels P.Ltd. Vs. ITO And Another [2011] 338 ITR 51 (Delhi). (b) CIT Vs. SFIL Stock Broking Ltd. [2010] 325 ITR 285 (Delhi). (c) Sarthak Securities Co.P. Ltd. Vs. ITO [2010] 329 ITR 110 (Delhi). 4. Learned DR, on the other hand, relied upon the order of learned CIT(A) and stated that in this case, notice under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ix years from the relevant assessment year ended on 31st March, 2008. The reasons recorded as well as notice under Section 148 were signed on 31st March, 2008 but the same were handed over to the postal authorities on 1st April, 2008. The notice was issued at the following address:- M/s On Exim (P) Ltd., 550, Kucha Pati Ram Bazar Sita Ram, Delhi. 7. The address given in the original assessment order was as under:- U-112, LGF, Vidhata House, Vikas Marg, Shakarpur, Delhi. In the assessment order passed in pursuance to notice under Section 147, address is as under:- M/s On Exim Pvt. Ltd., 7, Mathura Road, Jung Pura, New Delhi. 8. Even in the appeal memo in the appeal filed by the Revenue before the ITAT, the address of respondent is the same as given in the assessment order passed under Section 147. It is admitted by the Revenue itself that the notice under Section 148 is issued at the address given in the communication from the Investigation Wing. That the Hon'ble Gujarat High Court in the case of Kanubhai M.Patel (HUF) Vs. Hiren Bhatt Or His Successors To Office and Others (supra) at page 32 of 334 ITR held as under:- Thus, the expression to i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the Income-tax Department and not with some other address which might have been given by the Investigation Wing. The notice was issued in March, 2008 and the assessment was completed in December, 2008 and, in the assessment order, the Assessing Officer himself has given a different address than what was given in the notice under Section 148. Therefore, we have no hesitation to hold that the notice was issued at the incorrect address and the same cannot be said to be valid issue of notice if the same is wrongly addressed. 10. The learned counsel for the assessee has also relied upon the various decisions of Hon'ble Jurisdictional High Court in support of his contention that the notice has been issued on the basis of vague information alleged to have been received from the Investigation Wing. We find that Hon'ble Jurisdictional High Court in the case of Signature Hotels P.Ltd. (supra) held as under:- allowing the petition, that the reassessment proceedings were initiated on the basis of information received from the Director of Income-tax (Investigation) that the petitioner had introduced money amounting to ₹ 5 lakhs during financial year 2002-03 as sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ejection of objections, the names of the companies were available with the authority and their existence was not disputed. The assessee in its objections had stated that the companies had bank accounts and payments were made to the assessee through banking channel. The identity of the companies was not disputed. Under these circumstances, the initiation of proceedings under section 147 and issuance of notice under section 148 of the Act were to be quashed. 12. When we examine the reasons recorded in the light of above decisions of Hon'ble Jurisdictional High Court, we are of the opinion that the ratio of the above decisions would operate in favour of the assessee because in the appeal before us also, the only information received by the Assessing Officer was that M/s Aayushi Stock Brokers (P) Limited is found to be providing accommodation entries in the form of bogus share transactions, bogus share capital etc. Then, there is a mention that the assessee has received bogus accommodation entries from such party, detail of which is as under:- S. No. Date Name Nature of A/c Ledger No. Am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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