TMI Blog2016 (8) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER PER O.P. KANT, A.M.: The present appeal by the assessee is directed against the order of learned Commissioner of Income Tax (Appeals)- XXXIII, New Delhi, dated 27.05.2013, raising the following grounds of appeal: 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 pursuan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It raised this issue again before the learned Commissioner of Income Tax (Appeals) but the learned Commissioner of Income Tax (Appeals) has also decided the issue against the assessee, hence, the present appeal before the ITAT. 3. At the outset of hearing, learned Authorized Representative of the assessee submitted that in the case, reassessment proceedings were initiated under Section 147 of the Act by way of issuing notice under 148 of the Act on 30th March, 2011 after recording reasons for reopening of the assessment. The reassessment proceeding was challenged before the learned Commissioner of Income Tax (Appeals), however, could not succeed, and thus, the assessee has challenged the reassessment proceedings before the Tribunal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in the case of sister concerns of the assessee company. We find that in the case of M/s. Sunaina Towers Pvt. Ltd. (supra), reasons recorded have been reproduced in para 7 of the order, which are as under: 7. Now, we have to examine the reasons recorded in the present case before us in view of the ratios laid down in the above cited decision of the Hon'ble jurisdictional High Court recently pronounced on 08.10.2015 to verify the contention of the Learned AR that while forming the belief that income chargeable to tax has escaped assessment on the basis of information received by it, the Assessing Officer has not applied her mind. The reasons recorded in the present case by the Assessing Officer for the purpose are being reproduced h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial Services/Chanderprabhu Finance securities Ltd., a shell company/concern floated/controlled by Shri S.K. Gupta. 4. In view of the above, I have reason to believe that amount/income of ₹ 25,00,000 has escaped assessment for the A.Y. 2004-05 for failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment within the meaning of section 147 of the Income-tax Act, 1961. 5. Issue notice u/s. 148 of the Income-tax Act, 1961. 8. The Tribunal in para 8 of the order held that the Assessing Officer has not applied his own mind while recording the reasons. The relevant para of the order of the Tribunal is as under: 8. The very perusal of the reasons, it is apparent that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... requirement is that the Assessing Officer must apply his mind to the material in order to form reasons to believe that the income of the assessee has escaped assessment. Such basic requirement while recording the reasons for initiation of proceedings under sec. 147 of the Act is missing in the present case before us. As it is evident in the reasons recorded, reproduced hereinabove, the Assessing Officer has simply recorded the information received from her colleague and without making any exercise of her mind on those information to form her own reasons to believe for the escaped assessment of ₹ 25 lacs, has issued notice under sec. 148 of the Act. We, respectfully following the ratios laid down by the Hon ble jurisdictional High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that he had been providing accommodation entries to various persons/beneficiaries through a large no. of shell companies/concerns floated by effectively controlled by him. He operated a number of accounts in the same bank/branch or in different branches, in the names of these shell companies/concerns. After receiving cash from the beneficiaries, Sh. S.K. Gupta used to deposit the same in the bank account of one of the these shell companies/concerns. Then he used to route the entries through two to four accounts of these shell companies/concerns before ultimately transferring same to the bank accounts of tire beneficiaries to give the color of genuineness to these transactions. 3. Further, as per the information received from the ACIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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