9911796707
TMI Blog2016 (7) TMI 195X X X X Extracts X X X X X X X X Extracts X X X X ..... -opening. However, such objections came to be rejected by the respondent by an order dated 5.10.2015. Hence this petition. 2. Learned counsel for the petitioner raised following contentions in support of the challenge to the impugned notice. (1) The notice was issued on 25.3.2015 when the present respondent was handed over charge of the assessment proceedings of the petitioner under transfer of assessment order passed by the Commissioner under section 127 of the Act only on 26.3.2015 and the records of the case were received by the respondent on 30.3.2015. Thus, the notice was issued even before the assessment was placed within the jurisdiction of the respondent Assessing Officer and the records of the case were transferred to him. (2) In the original scrutiny assessment, the question of purchase and sale of shares by the petitioner including 2.80 lacs shares of one Empower Industries Ltd. was examined by the Assessing Officer and any re-opening on this ground would be based on a mere change of opinion. (3) Counsel submitted that reasons recorded nowhere reflected in what manner, income of the petitioner chargeable to tax had escaped assessment. In absence of any such elemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... patch register under which the present notice alongwith several other notices were handed over to the postal authorities for onward communication. This was done on 30.3.2015 as per such register. We have perused original register presented before us by the learned counsel for the Revenue which confirms this position. Under the circumstances, we have no reason to discard the statement made by the respondent officer on oath that the notice was actually issued on 30.3.2015. 6. The second contention of the petition would receive a summary rejection. While we discuss the third contention at length, it would become clear that the issue of alleged accommodation entries received by the petitioner could not have been and so obviously was not part of the original assessment proceedings. 7. The most emphatically argued contention is last one, namely what the learned counsel for the petitioner describes as no escapement of the income of the petitioner which was chargeable to tax. The reasons in this context need to be reproduced: " Reasons for reopening the Assessments Manoj Chhaganlal Rathod (PAN: AAWPR9068F) AY 2012-13. 1. Search and survey action carried out at the residence and offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded under setion 132(4) of the Act on 11.6.2013, he was provided the seized data (OT sheet upto 31.3.2012) in soft copy and requested to rework the list of the accommodation entries provided by him to various beneficiaries. Further, a list of one time accommodation entries provided by Shirish Shah complied on the basis of the cash and the cheques sheets seized from the office of Shirish Chandrakant Shah situated at Dwarka Ashish Building was provided during the course of his statement recorded under section 131(1A) of the Act on 25.11.2013. 1.2 The cheque-wise, date-wise details of the OT entries received by the assessee in A.Y.2012- 2012 through Rajesh Jhaveri alongwith the details of the SCS companies through whom the funds have been layered are as under: Date Details Our co. Scrip Name Qty Rate Amt Comm Paid 03/02/12 Manoj C Rathod Acacia 1350000 06/02/12 Manoj C Rathod Acadia 4350000 09/02/12 Manoj C Rathod Adamin a 3000000 13.02.12 Manoj C Rathod Acacio 7,000000 15.03.12 Majoj C Ratho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entries and have been mainly received against payment of cash and other credits. The same are correlated with the entries made in the accounts of Rajesh Jhaveri by SCS in various excel sheets referred to above and on correlation it is clearly seen that majority of the entries have been paid against receipt of cash by SCS from the assessee (through Rajesh Jhaveri) In certain cases other credits received in the Rajesh Jhaveri account are used to pay these OT entries. But, as no business activities are being undertaken by SCS companies, as found during the course of search on SCS and as admitted by the directors of these companies in statements/notarised affidavits and declarations, all the entries received by Manoj Chhaganlal Rathod from SCS are mere accommodation entries and non-genuine transactions, the source of which is unexplained. 1.7. In view of the above facts, I have reason to believe that income amounting to Rs. 2,10,00,000/- chargeable to tax has escaped assessment within the meaning of section 147 of the Act by reason of the failure of the assessee to disclose fully and truly all material facts. Therefore, notice under section 148 of the Act is being issued." 8. Fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by Majoj Rathod i.e. assessee from SCS are mere accommodation entries and non-genuine transactions, the source of which is unexplained. 9. From the above recording of reasons, it cannot be stated that the reasons do not indicate the manner in which the income chargeable to tax had escaped assessment. If the standpoint of the Assessing Officer is correct and at this stage in absence of any contrary contentions and in view of the materials pointed out in the reasons recorded, we would like to proceed on such basis; unescapable conclusion would be that the assessee's income to the tune of Rs. 2.10 crores remained unassessed. According to the reasons, the receipt of a sum of Rs. 2.10 crores from two companies of SCS i.e. Acacio and Adamina was in return of the cash or other credits from the assessee given to SCS. If that be so, the sources of such funds remained unexplained. These observations, of course, are in the context of the contentions of the petitioner which are directed against the notice for re-opening of the assesment. Surely, the assessment would be framed on the basis of material that may be available on record and in accordance with law. 10. Under the circumstanc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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