TMI Blog2016 (3) TMI 974X X X X Extracts X X X X X X X X Extracts X X X X ..... art of the Assessee to fully and truly disclose the material facts, is not fulfilled. The mere fact that the assessment order may itself not advert to the fact that a questionnaire was issued and a reply was filed thereto by the Assessee would not ipso facto lead to an inference that the AO did not apply his mind and form an opinion on that ground. - Decided in favour of assessee Share capital received by the Assessee during the AY - Held that:- Even if the records are now to be produced before the Court and perused by it, it is not open for the Court to gather from the records the material/information which would support the reasons as communicated to the Petitioner by the DCIT. The court is therefore satisfied, that even in respect of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner submitted a letter dated 15th December 2009 in which inter alia it was stated that the Assessee had made investment in the project of development of commercial shopping complex by SPPL on DDA land and that the Assessee s portion would be handed over to it upon completion of the project. The income arising from the complex would be treated as business income. 3. Another query was raised in respect of the share capital raised by the Assessee during the AY in question. By letter dated 5th November 2009 the Assessee submitted a reply in the prescribed format furnishing the details of the parties to whom shares were allotted. The Petitioner also filed the return of allotment, the certificate of incorporation of allottees of shares, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this regard the reasons states that MCA/ITD database search and local enquiries revealed that these companies are defunct in nature, not found at the addresses given and many of them are in the strike off mode in MCA. It appears, prima facie, the assessee has taken accommodation entries from these defunct companies in the form of share capital and premium . The 'reasons' then adverted to the failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment for the assessment year 2007-08 . 8. The objections filed by the Assessee to the reopening of the assessment were rejected by an order dated 30th October 2014 which has also been assailed in the present petition. 9. In respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reto by the Assessee would not ipso facto lead to an inference that the AO did not apply his mind and form an opinion on that ground. Consequently, the Court holds that the first reason for reopening the assessment for the AY in question is bad in law. 11. Turning to the question of the share capital received by the Assessee during the AY in question, it was sought to be urged by learned counsel for the Revenue that the MCA database search itself constituted tangible material to justify the assumption of jurisdiction to reopen the assessment. It was submitted that the AO was only required to form a prima facie view on the basis of the material that was gathered and that it was only in the assessment proceedings that a further detailed ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued to it. 13. Mr. Rahul Chaudhary then urged that the Revenue should now be permitted to produce before the Court the complete record which if perused might substantiate the reasons recorded for reopening of the assessment. As far as this plea is concerned, it requires to be rejected for a simple reason that time and again, the Courts have reiterated that when a challenge is laid to the reopening of an assessment under Section 148 of the Act, the Court is to be guided only by the reasons recorded for reopening the assessment and not by the reasons and explanations given by the AO at a later stage. In Northern Exim (P) Ltd. v. DCIT [2013] 357 ITR 586 (Del), after referring to a large number of decisions, the Court reiterated the legal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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