TMI Blog2016 (6) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner of Income-tax (Appeals)-XXXIII, New Delhi qua the assessment year 2004-05 on the grounds inter alia that :- 1. That on the facts and circumstances of the case and in law, the Commissioner of Income Tax (Appeals)-XXXIII, New Delhi erred in rejecting appellant's contention that assessment order made by Assessing Officer was bad in law and void ab-initio. 2. That without prejudice, on the facts and circumstances of the case and in law, the Commissioner of Income Tax(Appeals)-XXXIII, New Delhi erred in upholding the assumption of jurisdiction u/s 147 by the Assessing Officer and in making the assessments in pursuance thereof. 3. That on the facts and circumstances of the case and in law, the Commissioner of Income Tax(Appeals)-XXXIII, New Delhi erred in confirming the addition of ₹ 15lacs made by Assessing Officer u/s 68 of the Income Tax Act,1961. 3.1 That on the facts and circumstances of the case and in law, the Commissioner of Income Tax(Appeals)-XXXIII, New Delhi erred in confirming the addition of amount of ₹ 15 lacs received by the appellant towards Sale of Investment in share as income u/s 68 of the Income Tax Act, 1961 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Assessee carried the matter before the ld. CIT (A) who has dismissed the appeal. Feeling aggrieved, the assessee came up in appeal before the Tribunal by way of filing the present appeal. 4. We have heard the ld. Authorized Representatives of the parties to the appeal, gone through the documents relied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. 5. Ld. AR for the assessee contended that the AO without applying the mind and without being satisfied himself as required u/s 147 of the Act proceeded to reopen the proceedings which are bad in law and relied upon the decision rendered by Hon ble jurisdictional High Court in Pr. Commissioner of Income Tax- 4 vs. G G Pharma Limited in ITA 545/2015 order dated 08.10.2015 and ITAT, Delhi Bench H , New Delhi in case of USG Buildwell Pvt. Ltd. vs. ACIT, Central Circle 23, New Delhi order dated 15.02.2016. However, on the other hand, the ld. DR for the revenue relied upon the order passed by the AO as well as the ld. CIT (A). 6. Undisputedly, it is settled principle of law that the AO is required to reach at an independent conclusion by applying his own mind that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T Act, 1961 8. Bare perusal of the reasons recorded by the AO for initiation of the proceedings u/s 147 of the Act apparently goes to prove inter alia that he has simply acted on the basis of information provided by the ACIT, Central Circle 19, New Delhi who has conducted survey operation in the S.K. Gupta Group of cases on 20.11.2007 at 308, Arunachal Building, 19, Barakhamba Road, New Delhi- 110001 and 1007-1008, Arunachal Building, 19, Barakhamba Road, New Delhi-110 001; that the information supplied by ACIT, Central Circle 19, New Delhi is again based upon the statement of S.K. Gupta recorded during survey proceedings; that as per the information received by the AO, assessee reported to have received ₹ 10,00,000/- vide cheque no. 778929 dated 15.10.2003 and an amount of ₹ 5,00,000/- vide cheque no.778945 dated 18.11.2003 from the Federal Bank account of M/s Chanderprabhu Financial Services/ Chanderprabhu Finance Securities limited, a shell company/concern floated/controlled by Sh. S.K. Gupta. 9. Now, the sole question arises for determination in this case is as to whether the AO can initiate proceedings u/s 147/148 of the Act on the basis of certain comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut 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 that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account by way of above accommodation entries. The above conclusion is unhelpful in understanding whether the AO applied his mind to the materials that he talks about particularly since he did not describe what those materials were. Once the date on which the so called accommodation entries were provided is known, it would not have been difficult for the AO, if he had in fact undertaken the 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 h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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