9911796707
TMI Blog2016 (1) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... n order. 2. The facts, in brief, are as under:- Survey u/s 133A of the Income Tax Act, 1961 was conducted by the investigation wing at the office premises of one Shri Sanjay Rastogi, Chartered Accountant on 4th March, 2003 wherein it was found that Shri Sanjay Rastogi along with his father and his employees was running some concerns involved in providing accommodation entries. In these concerns Shri Sanjay Rastogi and his associates were directors. Shri Sanjay Rastogi in his statement dated 20th April, 2003 recorded u/s 131 of the Income Tax Act, 1961 is said to have stated that apart from his professional work he was also providing certain services in connection with the companies / concerns / entities that were not doing genuine busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee and added to its income u/s 68 of the Income Tax Act for AY 2000-2001. 3. In the first appellate proceedings the Ld. CIT (A), while dismissing the appeals of the assessee for both the years through a common order, gave a categorical finding that from a perusal of the material produced, it was not possible to form an opinion with regard to the creditworthiness to the investors. Ld. CIT (A) further gave a finding that in spite of repeated opportunities the assessee failed to file the names, correct postal addresses, PAN numbers and copies of ledger account of all the investors. The addresses which were given were found to be incorrect in as much as the letters could not be served and were returned undelivered. The Ld. CIT(A) obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f facts already available on record. We also rely on the decision of the Hon'ble Supreme Court in the case of Jute Corporation of India Ltd. v. CIT [1991] 187 ITR 688, wherein it was held that in the absence of any statutory provision, the appellate authority is vested with all the plenary powers which the subordinate authority may have in the matter. The Hon'ble Court held that the Tribunal will have the discretion to allow or not allow a new ground to be raised and further observed that where the Tribunal is only required to consider a question of law arising from the facts which are on record in the assessment proceedings then such a question should be allowed to be raised when it is necessary to consider that question in order t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re based on information received from Additional DIT (Investigation) which was accepted by the AO in a mere mechanical manner. The Ld. AR relied on a plethora of decisions in support of his preposition viz. CIT vs Atul Jain 299 ITR 383 (Delhi), United Electrical Company (P) Ltd vs. CIT & Ors. 258 ITR 317 (Delhi), CIT vs. SFIL Stock Broking Ltd. 325 ITR 285 (Delhi), Sarthak Securities Co. (P) Ltd. vs. ITO 329 ITR 110 (Delhi) and Signature Hotels (P) Ltd. vs. ITO & Anr. 338 ITR 51 (Delhi). The Ld. AR also placed reliance on the decision rendered by 'G' Bench of this Tribunal in ITA No. 3751/Del/2011 in Smt. Shakuntala Devi vs. ITO and on the decision rendered by 'B' Bench of this Tribunal in ITA No. 2068/Del/2010 in the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment. However, once that stage is crossed and the reassessment proceedings are set in motion, the material on the basis of which the requisite belief was formed by the AO has to be appraised and examined. It is seen that the reassessment proceedings were initiated entirely on the basis of specific information received from the investigation wing and it was during the course of inquires from the bank by the investigation wing that it was revealed that the assessee was a beneficiary of some accommodation entries. As per the reasons recorded, it is evident that the AO did not corroborate or examine the information received from the investigation wing before recording his own satisfaction of escaped income and initiating the reassessment p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry for his assessment for that year, income chargeable to tax has escaped assessment for that year or alternatively notwithstanding that there has been no omission or failure as mentioned above on the part of the assessee, the ITO has in consequence of information in his possession reason to believe that income chargeable to tax has escaped assessment for any assessment year. Unless the requirements of cl. (a) or cl. (b) of S. 147 are satisfied, the ITO has no jurisdiction to issue a notice under S. 148." 10. Under the circumstances and respectfully applying the ratio of the judgments rendered by the Jurisdictional High Court in CIT vs Atul Jain 299 ITR 383 (Delhi) , United Electrical Company (P) Ltd vs. CIT & Ors. 258 ITR 317 (Delhi), CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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