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MR. SHREE BHAGWAN Versus ITO, WARD 21 (4) , NEW DELHI

Validity of reopening of assessment - addition u/s 68 - Held that:- The reasons and the information referred to is extremely scanty and vague. There is no reference to any document or statement, except Annexure, which has been quoted above. Annexure cannot be regarded as a material or evidence that prima facie shows or establishes nexus or link which discloses escapement of income. Annexure is not a pointer and does not indicate escapement of income. Further, it is apparent that the AO did not a .....

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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 the Order dated 5.12.2011 passed by the Ld. CIT(A)-XXII, New Delhi relevant to assessment year 2003-04. 2. The following grounds hav .....

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illegal notice u/s. 148. 4. The Ld. CIT(A) has grossly erred on facts as well as in law in holding that bank pass book is books of accounts for the purposes of section 68. 5. The Ld. CIT(A) has grossly erred on facts as well as in law in confirming the addition of ₹ 20,34,000/- u/s. 68 on account of cash deposited in the back account. 6. The Ld. CIT(A) has grossly erred on facts as well as in law in confirming the addition of ₹ 1,10,000/- without assigning any reason except that it i .....

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dia) 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. Where .....

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has been filed by the assessee u/s. 139(1) and even in response of notice u/s. 148 of the I.T. Act, 1961. Despite, issuing notices to the assessee u/s. 142(1) / 143(2) of the I.T. Act, 1961, neither assessee nor any representative from the assessee has attended the hearing. In the absence of return filed by the assessee u/s. 139(1) and in response of notice u/s. 148. The AO estimated the income of the assessee at ₹ 1,10,000/- being the minimum amount chargeable to tax and since no explana .....

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ore the Tribunal. 5. Ld. Counsel of the assessee has submitted that notice u/s. 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. CI .....

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he assessee and stated that the lower authorities have passed the well reasoned order which does not need any interference on the part of the Tribunal, therefore, the orders of the revenue authorities may be upheld. 7. We have heard both the counsel and perused the records. We find that in the present case the undated reasons recorded by the AO for initiation of proceedings read as under:- As per information received from the Asstt. Director of Income Tax (Inv.) Unit-II(2), New Delhi vide his le .....

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0. The information received was that the assessee has deposited cash of ₹ 20,34,000/- in his savings bank account. The information did not say that the cash represents undisclosed income. The AO did not dwell upon the veracity and the basis of information received. He 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 informatio .....

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undated reasons recorded by the AO for initiation of proceedings; read as under: Information received from the office of the Director of IT (Inv.)- VI, New Delhi revealed that Mls Signature Hotels (P) Ltd. has introduced unaccounted money in its books of account during financial year 2002-03 through accommodation entry from Mls Swetu Stone PV for ₹ 5lacs. In view of the above, I have reasons to believe that taxable income to the tune of ₹ 5 lac has escaped assessment within the meani .....

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pointer and does not indicate escapement of income. Further, it is apparent that the AO did not apply his own mind to the information and examine the basis and material of the information. The AO accepted the plea on the basis of vague information in 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 .....

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