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2015 (11) TMI 18 - ITAT DELHI

2015 (11) TMI 18 - ITAT DELHI - TMI - Reopening of assessment - Held that:- According to the information, the amount received from a company, S, was nothing but an accommodation entry and the assesee was the beneficiary. The reasons did not satisfy the requirements of Section 147 of the Act. There was no reference to any document or statement, except the annexure. The annexure could not be regarded as a material or evidence that prima facie showed or established nexus or link which disclosed esc .....

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Shri Kapil Goel, Advocate For The Department: Sh. Sudhiranjan Senapati, Sr. DR ORDER PER H.S. SIDHU : JM This is an appeal filed by the Assessee is directed against the Order of the Ld. CIT(A)-XXIV, New Delhi dated 28.9.2012 for the asstt. year 2007-08. 2. The following grounds have been raised in the Appeal. Validity of Reopening u/s. 148 1. That on the facts and in the circumstances of the case and in law, Ld. CIT(A) erred in not quashing the reopening action of the AO being made in contraven .....

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fest that same do not amount to reasonable belief and there is total lack of application of mind and tangible material. 4. That on the facts and in the circumstances of the case and in law, appellant has not been provided the opportunity to rebut and confute the reopening and reasons recorded as per dictum of Apex Court in GKN Drive Shaft 259 ITR Page 19 thus nullifying entire proceedings. Merits of the case 5. That on the facts and in the circumstances of the case and in law, ld. CIT(A) erred i .....

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ant craves leave to add, to amend, modify, rescind, supplement or alter any of the grounds stated herein above, either before or at the time of hearing of this appeal. 3. The brief facts of the case are that in this case, a TEP was received from DG (Vigilance), New Delhi through CIT, Delhi-IX, New Delhi vide letter No. CIT-IX/Hqrs/TEP/2007-08/1604 dated 12.09.2007 that a bank locker no. 33 of Shri Kamal Dhawan and Smt. Anju Dhawan maintained with SBI, Subhash Nagar Branch, New Delhi was operated .....

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at these three properties were purchased by him in the years 2000, 1999 and 1998 respectively. As regards the gold jewellery, he stated that most of it was received by his wife Smt. Anju Dhawan at the time of their marriage. The assessee gave a statement dated 14.06.2006, recorded u/s. 161 of Cr.PC. by Sh. Rajiv Wahi, Inspector, CBI, SCR-II, New Delhi. In the above statement, the assessee stated that he had kept cash of ₹ 7,49,000/- in his bank locker no. 33 of SBl Branch Subhash Nagar, wh .....

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s filing his return of income showing business in the name of M/s. Dhawan Enterprises, which did not exist. The locker was opened on 8.6.2006 in the presence of the assessee, his wife Smt. Anju Dhawan, Sh. Rajiv Wahi, Inspector, CBI and Dy. Manager, Accounts in SBI Subhash Nagar, New Delhi Sh. Ravi Chopra. This information was passed on to the AO, who issued notice u/s. 148 for AY 2007-08 on 2.6.2009, since the assessment proceedings for that year had already been completed by that time. Thereaf .....

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ssessee also claimed that approx. 800 grams of jewellery found belonged to him and his wife. The AO issued letters uls. 133(6) to Sh. Sanjay Sharma and Sh. Jatinder Pal Singh, whose statements were recorded by the AO on 13.12.2010. Both Sh. Sanjay Sharma and Sh. Jatinder Pal Singh admitted that they had given cash of ₹ 2,50,000/- and ₹ 3,70,000/- to the assessee for business purposes, but both of them were not aware that this cash was kept in locker no. 33 with SBI, Subhash Nagar, Ne .....

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appeal of the assessee. 5. Against the aforesaid order of the Ld. CIT(A), Assessee is in appeal before the Tribunal. 6. Ld. Counsel of the assessee reiterated the contention raised in the grounds of appeal wherein he stated that the reopening action of the AO and confirmed by the Ld. CIT(A) being made in contravention of jurisdictional conditions stipulated u/s. 147 to Section 151 of the Act. He further submitted that the from the Reply dated 17.6.2014, it was admitted by the AO that reasons wer .....

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lifying entire proceedings. He further referred the various case laws of the Delhi High Court by which the present case of the assessee is covered including the case of Signature Hotel Pvt. Ltd. (2011) 338 ITR 51. 7. On the other hand, Ld. DR relied upon the order passed by the Ld. CIT(A) on the issue in dispute. 8. I have heard both the parties and perused the records. I find that the AO has recorded the reasons for belief that income has escaped assessment as under. The same is attached with t .....

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unts even he has not shown any jewellery in the books of accounts. 3. On the basis of information as per para 1 above, I have reason to believe that assesee has not disclosed true and correct particulars of his income and income has escaped assessment is likely to exceed more than ₹ 100,000. Notice u/s. 148 is required to be issued to assessee for asstt. year 2007-08. Sd/- (S.P. Sachdeva) ITO, Ward 27(2), New Delhi 9. I find that Assessee Sh. Kamal Dhawan has asked some information from th .....

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under:- S.No. Information/ Details required Reply / Status 1. Whether before issuing notice u/s. 148 for Asstt. year 2007-08, any reasons were recorded by Assessing Officer kindly reply in Yes or No. Yes 2. If answer is Yes, whether same were informed to the Assessee and whether a copy of said reasons were served on Assessee. You have not made and any request to provide the same during assessment proceedings. 3. Also provide copy of the said reasons recorded alongwith accompanying material. Cop .....

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sel submission that was not given opportunity to rebut and confute the reopening and reasons recorded as per dictum of Apex Court in GKN Driveshafts (India) Ltd. vs. ITO [2003] 259 ITR 19 which nullifying entire proceedings. In this case, the Hon ble Apex Court has held as under:- That after the receipt of the notice under section 148 of the I.T. Act, the assesse must file the return, but he is entitled to ask for the reasons for issuance of a notice. The Supreme Court has further held that when .....

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ually incorrect. Furthermore, the power of the AO to proceed with the Assessment proceedings would be limited by the reasons recorded by him. He would be assessing or reassessing the income of the assessee only on the reasons recorded by him and cannot travel beyond the reasons and continue the proceedings of assessment on different reasons. 9.2 In the background of the aforesaid discussions and precedent relied upon, I am of the considered view that only effective ground in this appeal is reass .....

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risdictional High Court in the case of Signature Hotels P. Ltd. vs. Income Tax Officer [2011] 338 ITR 0051 wherein the Hon ble High Court has held matter 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 re .....

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