TMI Blog2015 (10) TMI 1712X X X X Extracts X X X X X X X X Extracts X X X X ..... a mechanical manner. The CIT also acted on the same basis by mechanically giving his approval. The reasons recorded reflect that the AO did not independently apply his mind to the information received from the Director of I.T. (Inv.) and arrive at a belief whether or not any income had escaped assessment. See Signature Hotels P. Ltd. vs. Income Tax Officer [2011 (7) TMI 361 - Delhi High Court] - Decided in favour of assessee. - I.T.A. NO. 877/DEL/2012 - - - Dated:- 10-9-2015 - SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER For The Assessee : Shri V.K. Aggarwal, A.R. For The Department : S hri Sujit Kumar, Sr. DR ORDER PER H.S. SIDHU : JM The Appeal filed by the Assessee emanate out of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase are that an information from ADIT (Inv.), New Delhi has been received on 29.3.2010 that a Tax Evasion Petition against Sh. Harish Pawar Prop. Amrit Impex (India) was received on 28.12.2008. During the investigation, it has been noticed that Sh. Shree Bhagwan Prop. Shree Agencies, House No. 9, Village Naya Bans, Near Narela has maintained and operated a bank account in HDFC Bank Limited, Pusa Road, Bazar Marg, Rajinder Nagar, New Delhi and in this account cash of ₹ 20,34,000/- was deposited during the period 28.4.2002 to 25.1.2003. The account was used for transferring fund to the bank of Sh. Harish Pawar who provided accommodation entry. Whereas Sh. Shree Bhagwan in his reply dated 20.8.2009 has admitted that he has no other bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 148 has been issued in a mechanical manner on the basis of vague information from ADIT (Inv.) received on 29.3.2010 and also stated that AO has not mentioned any material which has led him to believe that the cash deposited in the bank account represented undisclosed income which has escaped assessment. He has simply filled up a proforma mentioning the information received and sent the Proforma Report to the Addl. CIT for approval, hence, the notice u/s. 148 is patently illegal. In this regard, he placed reliance of the various decisions of Hon ble Delhi High Court including the decision in the case of Signatures Hotels (P) Ltd. vs. ITO Anr. (2011) 338 ITR 51 (Del.) and stated that the present case is covered by the aforesaid decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led him to believe that the cash deposited in the bank account represented undisclosed income which has escaped assessment. He has simply filled up a proforma mentioning the information received and sent the Performa report to the Addl CIT, for approval. Therefore, the notice u/s. 148 is patently illegal. We also note that the facts and circumstances of the present case are similar and identical to that of the case in the Signature Hotels (P) Ltd. vs. ITO Anr. (2011) 338 ITR 51 (Del.) decided by the Hon ble Delhi High Court. In the said case during the assessment proceedings similar reasons were recorded by the AO which reads as under:- 7. In the present case the undated reasons recorded by the AO for initiation of proceedings; read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. We further find considerable cogency in the assessee s submission that the present case is squarely covered by the Order of the Hon ble Delhi High Court dated 21.7.2011 passed in the case of Signature Hotels P. Ltd. vs. Income Tax Officer [2011] 338 ITR 0051, wherein the Hon ble Court has held as under:- Held, allowing the petition, that the reassessment proceeding were initiated on the basis of information received from the Director of Income Tax (Investigation) that the petitioner had introduced money amounting to ₹ 5 lacs during the financial year 2002-03 as stated in the Annexure. According to the information, the amount received from a company, S, was nothing but an accommodation entry and the assesee was the beneficia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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