9911796707
TMI Blog2015 (11) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessment under section 147 of the Income Tax Act, 1961 (for short "the Act"). Considering such submissions of the assessee, we propose to dispose of this issue at the first instance. 3. Briefly the facts of this issue are, the assessee, which is now known as "GLB Finvest Pvt. Ltd.", is a company. For the assessment year under consideration, the assessee filed its return of income on 18th October 2004, declaring total income of Rs. 98,233. The return of income was processed under section 143(1) of the Act on 15th February 2005. Subsequently, on the basis of information found as a result of search conducted under section 132 of the Act, in case of Giriraj Vijayvargia on 26th April 2007, the Assessing Officer re-opened the assessment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t order both on the issue of re-opening of assessment as well as on merits of addition made. As it appears, since on the date of hearing before the learned Commissioner (Appeals), no one appeared on behalf of the assessee to represent the case, the learned Commissioner (Appeals) proceeded to dispose of the appeal ex-parte by confirming the additions made. Being aggrieved, the assessee is in further appeal before the Tribunal. 5. The learned Counsel for the assessee, at the outset, submitted before us that the issue stands covered in favour of the assessee by virtue of the decision of the Tribunal in assessee's own case for the assessment year 2003-04, wherein the Tribunal, while considering the validity of re-opening of assessment on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Shri Giriraj in his statement . It is pertinent to note that these three concerns (assessee before us) are not part of the beneficiaries of the accommodation entries as per the allegation made in the statement of Shri Giriraj. Further even those four concerns who have allegedly received the accommodation entries in the form of share application money are not the share applicants of these assessee's before us. Therefore, as far as, share application money received by the assessee the same is neither came from Shri Giriraj or from any related party or person or even from the other group concern of Shri Vikas Berlia. The share application were received by the assessee from following concerns:- 1. M/s Shresth Leasing and Finance Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20 as under:- "18. For all these reasons, it is evident that there was absolutely no basis for the first respondent to form a belief that any income chargeable to tax has escaped assessment within the meaning of the substantive provisions of section 147. Explanation (2) to section 147 creates a deeming fiction of cases where income chargeable to tax has escaped assessment. Clause (b) deals with a situation "where a return of income has been furnished by the assessee but no assessment has been made and it is noticed by the Assessing Officer that the assessee has understated the income or has claimed excessive loss, deduction, allowance or relief in the return." For the purpose of clause (b) to Explanation (2), the Assessing Officer must no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Assessing Officer in reopening the assessment u/s 147/148 is contrary to the powers permitted under the said provisions of Act. In the case in hand, the reasons recorded by the Assessing Officer do not indicate even a remote nexus between the application money received by the assessee with the alleged accommodation entries provided by Shri Giriraj Vijayvargiya or the alleged beneficiary of the accommodation entries. Accordingly, in the facts and circumstances of the case, we hold that the reopening in these cases are not valid and consequently the same is quashed." The aforesaid findings of the co-ordinate bench apply in letter and spirit to the facts of the present case also. Therefore, respectfully following the decision of the co- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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