New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (5) TMI 1161 - ITAT DELHI

2016 (5) TMI 1161 - ITAT DELHI - TMI - Reopening of assessment - information received from the Directorate of Income Tax (Investigation) - Held that:- After going through the reasons recorded by the AO, we are of the view that AO has not applied his mind so as to come to an independent conclusion that he has reason to believe that income has escaped during the year. In our view the reasons are vague and are not based on any tangible material as well as are not acceptable in the eyes of law. The .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

2013 - Dated:- 3-5-2016 - Shri H. S. Sidhu, Judicial Member And Shri Prashant Maharishi, Accountant Member For the Assessee : Sh. Satyen Sethi, Adv For the Department : Sh. R.S. Negi, Sr. DR ORDER Per H. S. Sidhu, JM The Assessee has filed the Appeal against the impugned Order dated 16.7.2013 passed by the Ld. CIT(A)-XVII, New Delhi relevant to assessment year 2002-03. 2. The grounds raised by the Assessee reads as under:- 1. That on the facts and in the circumstances of the case and in law, whe .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

with law. 2. That on the facts and I the circumstances of the case and in law, whether the assessing officer had any material before him to hold that the appellant's income has escaped assessment even though he had no knowledge as to what has been stated and who had made the alleged statement before Directorate of investigation, that share capital money received by the appellant received through banking channel, was a bogus transaction? 3. That on the facts and in the circumstances of the ca .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ut making the statement available to the appellant for rebuttal or without giving the opportunity to cross examine the person making the statement? 5. Whether (IT (A) was legally justified in rejecting the appeal even without considering the following points and submissions made to him through written submissions during the appeal proceedings: i) Fresh confirmation with copies of income tax returns for the assessment year 2002-03 and assessment year 2012-13 with PAN details of both the companies .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

n the circumstances of the case and in law, whether the Assessing Authority had acted on his own belief regarding the escapement of income or on the borrowed opinion of directorate of investigation about escapement 3. The brief facts of the case are that the assessee filed original return of income on 30.10.2002 declaring income of ₹ 72,97,625/-. Assessment in the case was made u/s. 143(3) of the I.T. Act on 30.12.2004 on total income of ₹ 73,88,130/-. Subsequently, on the basis of i .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

. 143(2) was issued and served and in response thereto assessee s authorized representative attended the assessment proceedings and during the assessment proceedings AO noticed that the accommodation entries in the garb of share application money. Thus, the assesse has introduced its own undisclosed income in its books of accounts routing it through the entry providers. Hence, an amount of ₹ 15 lacs shown by the assessee as share application money received from various parties was treated .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

in Appeal before the Tribunal. 6. At the time of hearing, Ld. Counsel of the assessee has only argued the legal ground challenging the validity of reopening u/s. 148 of the I.T. Act by stating that action of the Assessing Officer is illegal, because the same is lacking tangible material / reasonable cause and justification. The action of the Revenue Authorities is in absence of nexus between alleged information and tentative inference; non application of mind much less independent application of .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

that by following the decision in the case of Pr. CIT vs. G&G Pharma India Ltd., the legal ground raised by the Assessee in the present appeal may be allowed. 7. On the contrary, Ld. DR relied upon the order passed by the CIT(A) on issue of validity of reopening and stated that Ld. CIT(A) has rightly upheld the action of the AO of reopening. 8. We have heard both the parties and perused the relevant records available with us, especially the orders of the revenue authorities and the case law .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

otice u/s. 148 of the Income Tax Act, 1961 for the asstt. Year 2002-2003 - Intimation of reasons for reopening the case - Regarding Please refer to your letter No. Nil dated 16th April, 2009, on the above mentioned subject. As requested, the reasons for issuing the notice u/s. 148 is furnished as under:- In this case, assessment u/s. 143(3) of the Income Tax Act, 1961 was completed on 30.12.2004 at an income of ₹ 73,88,130/-. Subsequently, Information was received from the Directorate of I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he last 5-6 years. The investigation wing on the basis of enquiries conducted / information collected has sent the name and address and bank account of the beneficiary and the value of entry taken from different persons giving the accommodation entry. The names of entry giver and bank accounts through which the entry was given has also been informed by the Investigation Wing. One such beneficiary is M/s Pankaj Gas Cylinder Ltd. As per the report of the Inv. Wing, M/s Pankaj Gas Cylinder Ltd., ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ted. Yours faithfully, Sd/- (S.B. Singh) Asstt. Commissioner of Income Tax Circle 14(1), New Delhi 8.1 After going through the reasons recorded by the AO, we are of the view that AO has not applied his mind so as to come to an independent conclusion that he has reason to believe that income has escaped during the year. In our view the reasons are vague and are not based on any tangible material as well as are not acceptable in the eyes of law. The AO has mechanically issued notice u/s. 148 of th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

A No. 545/2015 dated 8.10.2015 of the Delhi High Court wherein the Hon ble Court has adjudicated the issue as under:- 12. In the present case, after setting out four entries, stated to have been received by the Assessee on a single date i.e. 10th February 2003, from four entities which were termed as accommodation entries, which information was given to him by the Directorate of Investigation, the AO stated: "I have also perused various materials and report from Investigation Wing and on th .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e exercise, to make a reference to the manner in which those very entries were provided in the accounts of the Assessee, which must have been tendered along with the return, which was filed on 14th November 2004 and was processed under Section 143(3) of the Act. Without forming a prima facie opinion, on the basis of such material, it was not possible for the AO to have simply concluded: "it is evident that the assessee company has introduced its own unaccounted money in its bank by way of a .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version