TMI Blog2016 (11) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... NTANT MEMBER For The Assessee : Dr. Rakesh Gupta and Shri Somil Agarwal, Advocate For The Department : Shri Anil Sharma, Sr. DR ORDER This appeal filed by the assessee is directed against the order of the CIT(A) dated 28.11.2014 for the assessment year 2005-06 on the following grounds:- 1. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in framing the reassessment u/s 147 and that too without recoding valid reasons and without obtaining valid approval as per law and without complying with mandatory condition of section 147 to 151 as envisaged under the law. 2. That having regard to the facts and circumstances of the case, Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r hearing the rival contentions, I find that the AO tried to assume jurisdiction by issuing notice u/s 148 for reopening the assessment. He has recorded the reasons for reopening the assessment as follows:- A search operation u/s 132 of the Income-tax Act, 1961 was conducted at the office premises of Shri Tarun Goyal, Charted Accountant at 13/34, WEA, Arya Samaj Road, Karol 8agh, New Delhi by the Investigation Wing of Delhi on 15.09.2008. During the course of search operation, it was established that Shri Tarun Goyal has floated about. 90 companies for the purpose of providing accommodation entries. The Directors of these companies are none but former and present employees of Shri Tarun Goyal. Shri Tarun Goyal has been using them for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent year had escaped assessment. Further, l am also satisfied that on account of failure on the part of the assessee to disclose truly and fully all the material facts necessary for the above assessment year, the income to the tune of ₹ 20.00 Lakh has escaped assessment within the meaning the section 147 of the Income Tax Act, 1961. Since, four years has expired from the end of the relevant assessment year and no scrutiny assesssment was completed u/s 143(3) in this case for the said assessment year, the reasons recorded above for the purpose of reopening of assessment is put up kind satisfaction of Addl. Commissioner of Income-tax Central range-6, New Delhi in terms of the proviso of Section 151(2) of the I.T. Act, 1961. 3. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modation 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 have simply concluded: it is evident that the assessee company has introduced its own unaccounted money in its bank by way of accommodation entries . In the considered view of the Court, in light of the law explained with sufficient clarity by the Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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