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Shri Parasram Industries Pvt. Ltd. Versus Income Tax Officer Ward 8 (3) & Another

Reopening of assessment - uncounted share application money received - change of opinion - Held that:- The questionnaire and, particularly, question No. 3, specifically raised the issue with regard to the shares. The responses were given by the assessee from time to time and what is more important is that the Assessing Officer had directly issued letters to all the share applicants, who had, in turn, given their confirmations along with their PAN numbers and bank details. After having received t .....

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. Deputy CIT: [2014 (9) TMI 4 - DELHI HIGH COURT ] wherein a notice under Section 148 of the said Act was quashed for being issued after the expiry of four years from the relevant assessment year, wherein there was no specific mention of which material facts were not disclosed by the assessee in the course of its original assessment proceedings under Section 143(3) of the said Act. In the present case also there is not even a whisper of the allegation that there has been a failure on the part of .....

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014 issued by the respondent No.1 under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the said Act ) as also all proceedings pursuant thereto, including the order dated 26.09.2014, passed by the respondent No.1, dismissing the objections filed by the petitioner. 2. The main grounds raised in the writ petition are that the re-assessment proceedings having been initiated after four years from the end of the relevant assessment year, required certain pre-conditions to be fulfi .....

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nion inasmuch as the very issue sought to be raked up by way of the impugned notice under Section 148 of the said Act has been considered by the Assessing Officer during the time of the original assessment under Section 143 (3) of the said Act. 4. The original assessment under Section 143(3) was completed on 18.12.2009. This was, however, after a questionnaire had been issued to the assessee during the assessment proceedings on 12.06.2009. Question No. 3 of the questionnaire specifically require .....

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EW DELHI-110002. PHONE-23705348 NOTICE UNDER SECTION 133 (6) OF THE INCOME TAX ACT, 1961 F. NO. ITO/ W8(3)/143(3)/2009-10/ Dated 04-12-2009 To The Principal Officer M/s Sino Credits And Leasing Ltd 308, Arunachal Building, 19, Barakhambha Road New Delhi -110001 Sir/Madam, Sub:- Assessment proceedings u/s 143(3) of the I.T.Act, 1961 in the case of M/s Shri Parasram Industries P Ltd for A.Y 2007-08-reg:- During the course of assessment proceedings u/s 143(3) of the I.T. Act, 1961 for A.Y. 2007-08 .....

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t copy of ITR. The above information should reach my office by 10-12-2009 failing which penalty u/S 272 A of the Income Tax Act, 1961 may be initiated. Yours faithfully Sd/- (PIYUSH SINHA) Income Tax Officer, Ward-8(3), New Delhi. 5. The response to the said letter was given by M/s Sino Credits and Leasing Limited by issuing a confirmation letter to the following effect:- SINO CREDITS AND LEASING LIMITED STOCK AND SHRE BROKERS MEMBER: NATIONAL STOCK EXCHAGNE OF INDIA LIMITED : OTC EXCHANGE OF IN .....

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ohini, Delhi- 110085. We are assessed to Income Tax and our PAN is AAACS 1172 N. The Amount has been paid out of realization from our debtors. For Sino Credits And Leasing Limited Sd/ Director Similar letters were issued to all the share applicants and confirmations were obtained from the said share applicants. 6. The summary of documents filed by the petitioner/assessee and the confirmations received from the third parties directly by the Assessing Officer have been set out in Annexure P-XIII, .....

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rn filed ii. IT Return recd iii. Bank Statement recd 2 Central Gum & Chemical Ltd. 4000000 Confirmation Letter filed i. Confirmation Letter recd ii. IT Return recd iii. Bank Statement recd 3 Dhamaka Trading & Constructions 1000000 i. Confirmation Letter filed i. Confirmation Letter recd ii. IT Return filed ii. IT Return recd iii. Bank Statement filed iii. Bank Statement recd 4 Giriasho Company 1000000 i.Confirmation Letter filed i. Confirmation Letter recd ii. IT Return filed ii. IT Retu .....

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8 V.A. Foods 1000000 - i. Confirmation Letter recd iii. Bank Statement recd 9 Vasudeva Farms 1000000 i. Confirmation Letter filed i.Confirmation Letter recd ii. IT Return filed ii. IT Return recd iii. Bank Statement recd 10 Vijay Conductors 5500000 i. Confirmation Letter filed i. Confirmation Letter recd ii.IT Return filed ii. IT Return recd iii. Bank Statement recd 11 Vijay Shines 500000 Confirmation Letter filed i. Confirmation Letter recd ii. IT Return recd iii. Bank Statement recd 12 Vishru .....

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.2006 Vasudeva Farms 750093 600000 10.04.2006 V.A. Foods 775320 600000 10.04.2006 Giriasho Company 397652 900000 27.06.2006 Omni Farms 776932 650000 Total amount as per notice 28500000 7. It is only after all the above mentioned information was received by the Assessing Officer, that the assessment was framed under Section 143(3) on 18.12.2009. In the assessment order itself, it has been specifically recorded as under:- In response through Harish Kumar, C.A and A.R attended the proceedings and s .....

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ng GMBH v. Deputy Director of Income Tax: [2015] 376 ITR 70 (Delhi) to submit that the re-assessment proceedings would be invalid in case an issue or query is raised and answered by the assessee in the original assessment and yet, the Assessing Officer does not make any addition in the assessment order. In such situations, it would have to be accepted that the issue had been examined, but the Assessing Officer did not find any ground or reason to make any addition or reject the stand of the asse .....

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0. We note that in Lahmeyer Holding GMBH (supra), a Division Bench of this Court had placed reliance on the Full Bench decision in CIT v. Usha International Limited: [2012] 348 ITR 485 (Delhi) (FB), wherein it was, inter alia, held as under:- 3. Reassessment proceedings will be invalid in case an issue or query is raised and answered by the assessee in original assessment proceedings but thereafter the Assessing Officer does not make any addition in the assessment order. In such situations it sh .....

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nion that the present case is also one of change of opinion. This is so, because, the questionnaire and, particularly, question No. 3, specifically raised the issue with regard to the shares. The responses were given by the assessee from time to time and what is more important is that the Assessing Officer had directly issued letters to all the share applicants, who had, in turn, given their confirmations along with their PAN numbers and bank details. After having received the said information, .....

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ce under Section 148 and the proceedings pursuant thereto have to be set aside for the simple reason that the clear pre-conditon of there being a failure on the part of the assessee to fully and truly disclose all the material particulars necessary for assessment, has not been made out. In fact, if one looks at the reasons which have been supplied for initiating re-assessment, there is not even an allegation that there has been such a failure on the part of the petitioner/ assessee. For the sake .....

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ertain entry operators. The Investigation Wing of the Department had carried out survey u/s 133A in the case of Shri Suresh Kumar Gupta (S.K. Gupta) on 20.11.2007. It was gathered that Sh.S.K. Gupta who is having his office at 308, Arunachal Building, Barakhamba Road, New Delhi is a Chartered Accountant and is carrying on the business of share broker, financial consultancy and providing accommodation entries in the form of loans, advances, share application money, issuing bogus expenses' bil .....

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s through bank channels to give the color of genuineness of these accommodation entries. 2. This information has been provided by the ACIT, central Circle 22, New Delhi to the Assessing officer. In the case of the above assessee, the following accommodation entries have been taken:- Date of entry in books Ch. No. /PO/ DD/ Ch.And date Conduit Companies through which cheque issued Bank a/c Such conduit company Party to whom issued (beneficiaries) Amount 07.04.2006 Ch. No. 296100 dt. 07.04.06 Giria .....

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sram Indus. P. Ltd. 9,00,000 10.04.2006 Ch. No.750093 dt. 10.04.06 Vasudeva Farms SIB Shri Parasram Indus. P. Ltd. 6,00,000 10.04.2006 Ch. No.775320 dt. 11.04.06 V.A. Foods SIB Shri Parasram Indus. P. Ltd. 6,00,000 10.04.2006 Ch. No.793197 dt. 17.04.06 Central Gum SIB Shri Parasram Indus. P. Ltd. 30,00,000 10.04.2006 Ch. No.287098 dt. 15.04.06 Dhamaka Trading OBC Shri Parasram Indus. P. Ltd. 10,00,000 10.04.2006 Ch. No.397652 dt. 13.04.06 Giriasho Company OBC Shri Parasram Indus. P. Ltd. 9,00,00 .....

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dt. 01.05.06 Vijay Conductors HDFC Shri Parasram Indus. P. Ltd. 15,00,000 29.04.2005 Ch. No.141335 dt. 27.04.06 Vijay Conductors HDFC Shri Parasram Indus. P. Ltd. 20,00,000 29.04.2005 Ch. No.141337 dt. 27.04.06 Vijay Conductors HDFC Shri Parasram Indus. P. Ltd. 5,00,000 19.05.2006 PO. No. 016727 dt. 19.05.06 Zenith Estates IPSB Shri Parasram Indus. P. Ltd. 10,00,000 19.05.2006 PO. No. 016727 dt. 19.05.06 Zenith Estates IPSB Shri Parasram Indus. P. Ltd. 20,00,000 19.05.2006 PO. No. 016725 dt. 19 .....

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tion entry was not received at the time of original assessment. In view of the above discussed factual matrix, additional information/documents received from the Investigation Wing of the Income Tax Department and the various Judgments of the Hon'ble Supreme Court and Hon'ble High Courts, I have reason to believe that income of ₹ 2,85,000/- chargeable to tax has escaped assessment for AY.07-08, within the meaning of section 147 of the Income tax Act,1961. Therefore, file is put for .....

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. This aspect is also covered by several decisions of this Court, including Global Signal Cables (India) Private Limited v. Deputy Commissioner of Income Tax: [2014] 368 ITR 609 (Delhi), wherein a reference to an earlier decision in Haryana Acrylic Manufacturing Company v. CIT: [2009] 308 ITR 38 (Delhi) was made. In Haryana Acrylic (supra), this Court had observed as under:- 29. In the reasons supplied to the petitioner, there is no whisper, what to speak of any allegation, that the petitioner h .....

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condition for overcoming the bar set up by the proviso to section 147. If this condition is not satisfied, the bar would operate and no action under section 147 could be taken. We have already mentioned above that the reasons supplied to the petitioner does not contain any such allegation. Consequently, one of the conditions precedent for removing the bar against taking action after the said four year period remains unfulfilled. In our recent decision in Wel Intertrade Private Ltd. [2009] 308 I .....

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