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TMI Blog2016 (10) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer passed the assessment order for income-tax assessment year 2007-08 on the basis of the search and seizure operations carried out under section 132 on KSL Group by order dated 29.12.2009 and hence, the Assessing Officer had the information in his possession when he completed the original assessment proceedings for the year under reference by his order dated 15.12.2011 and as such, the issue of impugned notice under section 148 is bad in law and consequently, the impugned reassessment order is also bad in law. 2. The CIT(A) erred in upholding the assessment order passed by the AO u/s 143(3) r.w.s147 inasmuch as he assessment order is bad in law. The appellants contend that the Assessing Officer in the reasons recorded for re-opening the assessment has mentioned that" ..... it has been found that the assessee company has taken bogus bills for purchases from the following parties -" (emphasis ours) and has not. made any addition in the impugned assessment order on account of such bogus bills for purchases but has made an addition of receipt of unsecured loan from Seaview Trading Co. Pvt Ltd which has been squared-up during the year under reference. The appellants f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 143(1) of the Income Tax act, 1961 (hereinafter referred to as the Act). Thereafter the case of the assessee was selected for scrutiny and assessment was completed under section 143(3) at the returned income. Subsequently the case was reopened under section 147 of the Act and notice under section 148 of the Act was issued to the assessee on 28.3.2013 after recording the reasons which were also duly served the assessee. The reasons recorded by the AO are reads as under : as below:- "The assessee company filed its Return of income of income of Rs. 14776721/ - on 19/09/2008. The return was processed u/s 143(1) of the Income Tax Act, 1961. During the course of Search & Seizure Operation u/ s 132 of the Income Tax Act, 1961 in the case of KSL Group on 23. 12.2008,it has been found that the assessee company has taken bogus bills for purchases from the following parties: i) Realstar Trading Co. Pvt. Ltd. ii) Watergate Mercantile Co. Pvt. Ltd. iii) Sea view Trading Co. Pvt. Ltd. iv) Superhouse Trading Co. Pvt. Ltd. v) Montreal Trading Co. Pvt. Ltd. vi) Starview Mercantile Co. Pvt. Ltd. Moreover, the above parties had confirmed the issuance of accommo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) in the appellate proceedings.Now the assessee is before us challenging the order of CIT(A) 5. We shall first take up the issue on merit as raised in ground No.3 of the appeal that the ld. CIT(A) has erred in upholding the addition of Rs. 1,05,00,000/- as made by the AO u/s 68 of the Act for unexplained cash credit. 6. The ld.AR vehemently argued before us that similar issue of addition u/s 68 has been decided in assessee's own case by the co-ordinate bench of the Tribunal in ITA NO.6765/Mum/2012(AY-2007-08) dated 20.2.2015 in favour of the assessee. The ld. AR submitted that the reasons recorded by the AO for reopening the assessment stated that the assessee company has taken bogus bills for purchase from six parties and in the year 2007-08, the assessee received a sum of Rs. 94,95,000/- from Realstar Trading Co. Pvt. Ltd. whereas in the current year under the same facts Rs. 1.05 crores were received from M/s Seaview Trading Co. Pvt Ltd. The ld. AR argued that the co-ordinate bench of the Tribunal after considering all the facts and circumstances, concerning the said transaction has decided the issue in favour of the assessee by holding that the addition cannot be sustained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing officer has placed full reliance on the Sworn statements given by the four persons viz., shri Mahavir Duggar, Shri Dilip S Mehta, Smt. Sangeetha J Sawant and Shri Girishchand R Yadav for doubting about the genuineness and credit worthiness of M/s Real Star Trading Company P Ltd, from whom the assessee had received share application money of Rs. 94.95 lakhs. Admittedly, these statements were taken from the above said persons in connection with the search operations conducted on KSL group of Companies. Admittedly, the questions posed in the Statements should have been aimed to bring out the facts relating to M/s KSL Group only. Admittedly, at that point of time, these persons should also have given the statements in connection with M/s KSL group only. 10. In the above said statements, as submitted by the Ld A.R, no question seems to have asked about the transactions with the assessee herein. Though the assessing officer confronted the statement given by Shri Mahavir Duggar to him, yet the AO only asked about the correctness of the statement given by him earlier. Shri Mahavir Duggar stated that the contents of his earlier statement were correct. Hence, during the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tunity. We have already noticed that the assessee has furnished affidavits obtained from the four persons and these affidavits would show that they have not received any communication from the AO asking them to appear for Cross examination. These facts, in our view, further weaken the case of the revenue. Hence, we are of the view that the tax authorities are not justified in doubting about the genuineness of the transactions without bringing on record any material to show that the impugned transaction entered between the assessee and M/s Realstar Trading Co. P Ltd was also bogus. In our view, the statements given in connection with M/s KSL group cannot be used against the assessee, since the trade dealings between each of the party would differ in colour and character. Hence, we are of the view that the revenue cannot take support from the decision rendered by Hon'ble Delhi High Court in the case of Nova Promoters & Finlease (P) Ltd (supra). 13. The documents furnished in the paper book would show that the share application money has been received by the assessee by following proper procedures through the Banking Channels. The financial statements of M/s Realstar Trading Co. P L ..... 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