TMI Blog2013 (10) TMI 1415X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 47 of the Act and is thus invalid. The assessment framed in furtherance to the said notice u/s 148 of the Act is thus quashed as null and void in consequence. - ITA No. 2301/Del/2012 AND ITA No. 2302/Del/2012 - - - Dated:- 31-10-2013 - SHRI I. C. SUDHIR, JUDICIAL MEMBER Appellant by : Shri R.S. Singhvi, Advocate Respondent by : Mrs. Renuka Jain Gupta, Sr. DR ORDER PER I.C. SUDHIR, JUDICIAL MEMBER The assessee has questioned first appellate order on the following grounds :- 1(i) That on the facts and circumstances of the case, the CIT(A) was not justified in upholding reassessment u/s 148 even though there is no evidence or requisite satisfaction for assuming jurisdiction (ii) That impugned reassessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson on the basis of whose information proceedings u/s 148 were initiated. In this regard he referred page No. 12 to 16 of the paper book filed on behalf of the assessee which is copy of the objections against the reassessment raised by the assessee before the AO. To support his contention that proceedings u/s 148 of the Act for reopening cannot be initiated merely on the basis of information received from investigation wing of the department, Ld. AR placed reliance on the following decisions :- Signature Hotels Pvt. Ltd. vs. ITO (2011) 338 ITR 51 (Delhi) CIT vs. Pradeep Kumar Gupta (2008) 303 ITR 95 (Delhi). CIT vs. Smt. Vinita Jain (2007) Taxman 325 (Delhi) CIT vs. Orient Craft Ltd. (2013 354 ITR 536 (Delhi) MMTC vs. AC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtment. For a ready reference the contents of the said reasons recorded by the AO while issuing notice u/s 148 of the Act is being reproduced hereunder :- In this case an information is received from the O/o the (Inv. Unit-V). ARA Centre Jhandewalan Extn. New Delhi that VARUN TIBREWAL has taken bogus accommodation entries from the following parties in lieu of unaccounted money paid by the above named assessee. As per Annexure enclosed with the above information of DIT(Inv.Unit-V), New Delhi the details of transaction made by him is as under :- Date Amount Instrument No. Name of the party 30.12.03 150000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablishes nexus or link which disclosed escapement of income. The annexure was not a pointer and did not indicate escapement of income. Further, the AO did not apply his own mind to the information and examine the basis and material of the information. The relevant extract of the above decision is reproduced hereunder : In these circumstances, we are examining the reasons given by the Assessing Officer in the proforma seeking permission/approval of the Commissioner and whether the same satisfy the pre-conditions mentioned in section 147 of the Act. Annexure attached to the said proforma placed on record of the petitioner reads as under :- Beneficiary s name Value of ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egarded as a material or evidence that prima facie shows or establishes nexus or link which discloses escapement of income. The annexure is not a pointer and does not indicate escapement of income. Further, it is apparent that the Assessing Officer did not apply his own mind to the information and examine the basis and material of the information. The Assessing Officer accepted the plea on the basis of vague information in a mechanical manner. The Commissioner also acted on the same basis by mechanically giving his approval. The reasons recorded reflect that the Assessing Officer did not independently apply his mind to the information received from the Director of Income-tax (Investigation) and arrive at a belief whether or not any income h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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