TMI Blog2010 (12) TMI 1256X X X X Extracts X X X X X X X X Extracts X X X X ..... addition of ₹ 5,00,000/- despite when sufficient evidence was filed that confirmation for the loan of ₹ 5,00,000/- was filed and all material facts necessary for the assessment were fully and truly disclosed and ITO in the original assessment u/s 143(3) had recorded a categorical finding that necessary details as asked for were produced and placed on record. 2. That the ld.CIT(A) has grossly erred on fact and in law in confirming the addition of ₹ 5,00,000/- only because the AO has stated in the assessment order that loan confirmation originally filed was not available on record, without controverting the fact that necessary evidence in support of the genuineness of the loan was furnished during the original assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to reopen were that an information was received by the AO from DIT(Inv.) and according to that information, assessee had taken accommodation entry from M/s Sober Associates Pvt.Ltd., the detail of which is as under:- Assessee s Name Bank of the Assessee Amnt Instrument No. Date which on entry taken A/c no. Entry giving account A/c Holder Cosmos Fibre Class Ltd. Punjab National Bank 500000 28712 25.02.2002 14053 Sober Associates Pvt.Ltd. 5. The AO added the said amount to the income of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the course of original assessment proceedings was not available on record. He observed that information received from Investigation Wing was serious objections with regard to disclosure made by the assessee and in this respect, he has upheld the validity of initiation of reassessment proceedings. In respect to the argument regarding non-grant of opportunity for cross-examination, CIT(A) has observed that such objection of the assessee is without basis as the assessee was provided with the reasons of reopening to the assessee and assessee had also filed objections against that which were disposed of by the AO, therefore, it cannot be said that the AO did not disclose the information available with him to the assessee. He also observed that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easons mentioned by the AO are vague and there is no whisper in the reasons about failure of the assessee to disclose fully and truly all material facts necessary for assessment for AY 2002-03. Learned AR placed reliance on the following decisions to contend that initiation of reassessment proceedings is bad:- (i) JSRS Udyog Ltd. - 313 ITR 321 in which the reassessment proceedings were quashed on the basis that there was no allegation in the reasons recorded for reopening the assessment that the petitioner did not make full and true disclosure of all the material facts. (ii) Haryana Acrylic Manufacturing Co. - 308 ITR 38. In this case also, similar proposition was laid down and it was held that there being no whisper in the reasons su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 4.2 of his order:- 4.2 Therefore, as per the findings of the investigation report, it appears that income of the assessee to the extent of ₹ 5,00,000/- has escaped assessment within the meaning of section 68 of the I.T.Act because of failure on part of the assessee to disclose fully and truly all material facts necessary for asstt. for the AY 2002-03. Hence, in view of the provisions of section 147 of the I.T.Act, 1961, I have reasons to believe that this amount of ₹ 5,00,000/- represents income of the assessee chargeable to tax which has escaped assessment for AY 2002-03. 10. If it is so, then learned AR cannot place reliance on aforementioned two decisions of Hon'ble Jurisdictional High Court viz. JSRS Udyog Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompletion of assessment. If the entry itself is not genuine, then the disclosure of the assessee cannot be said to be full and true. Therefore, we are of the opinion that learned CIT(A) has rightly upheld validity of initiation of reassessment proceedings. We decline to interfere. 12. So far as it relates to the contention of the assessee regarding merits of the addition, we are of the opinion that assessee has right to be confronted with the evidence available with the AO. Mere information received in the shape of entry from Investigation Wing is not sufficient to make the addition. The assessee has to provide the source thereof. Therefore, we direct the AO to provide the source of the information that on what basis the said entry was s ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
