TMI Blog2016 (3) TMI 1159X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the Assessing Officer proceeded with incorrect assumption of facts and without any basis to initiate proceedings of reassessment u/s 147 of the Act and for issuance of notice u/s 148 of the Act which cannot be sustainable. - Decided in favour of assessee - ITA No.3148/Del/2013 - - - Dated:- 22-3-2016 - SHRI G.D. AGARWAL, HON BLE VICE PRESIDENT SMT. BEENA A. PILLAI, JUDICIAL MEMBER Assessee By : Shri Kapil Goel, Adv. Department By : Shri P. Dam Kanunjna, Sr. DR ORDER PER BEENA A. PILLAI, JM: The present appeal has been sent back by the Hon ble High Court vide order dated 11/01/2016, with a specific direction to decide grounds 1(a) to 1(d), as urged by the assessee in accordance with law. The grounds t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Beneficiary Bank Branch Karol Bagh Value of Entry Taken 500,000 Instrument No. by which Entry Taken 8628 Date on which entry taken 31.03.2004 Name of A/c Holder of Entry Giving Account Shubham Electronics Electric Bank from which entry given SBH Branch of entry giving bank KB A/c No. entry giving account 50038 Information so received has been gone through. The above said instruments are in the nature of accommodation e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred an appeal before this Tribunal. The coordinate Bench of this Tribunal passed order dated 18/03/2015, wherein it allowed the appeal filed by the assessee, by adjudicating ground(e), which was concerned with the validity of reopening as the assessee submitted that requisite sanction was not obtained by the ld. AO from the competent authority u/s.151 of the Act. 5. Aggrieved by the order of this Hon ble Tribunal the Revenue preferred an appeal before the Hon ble High Court, wherein the question that was admitted reads as under: Admit. The following question of law arises for consideration: Was the ITAT justified in invalidating the reopening of the assessment u/s 147/148 of the Act on the ground that the reasons recorded only c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ully perused the orders of the authorities below and the directions issued by the Hon ble Jurisdictional High Court in the assessee s own case. 7.1. The assessee had filed return of income for AY 2004-05 on 30.102004, declaring total income of ₹ 2,050/-. On the basis of a report from the investigation wing, the case was reopened on the basis that the money paid by the assessee, assessee amounting to ₹ 5,00,000/-, to M/s.Subham Electricals Pvt. Ltd. is an accommodation entry. 7.2. A perusal of the reasons mentioned hereinabove clearly suggest that there is no application of mind. On careful consideration of rival submissions of both the sides, it is ample clear that the Assessing Officer recorded reasons on receipt of certa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion entries, which information was given to him by the Directorate of Investigation, the AO stated: I have perused various materials and report from Investigation Wing and on that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account by way of above accommodation entries. The above conclusion is unhelpful in understanding whether the AO applied his mind to the above materials that he talks about particularly since he did not describe what those materials were. Once the date on which the so called accommodation 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 entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation Wing. In view of these facts, the alleged transaction is not the bonafide one . 8.2. The above conclusion is unhelpful in understanding whether the Assessing Officer applied his mind to the materials that he talks about particularly, since he did not describe what those materials were. It is observed that the details given are only with regard to the name of the bank and its branch, addresses of the beneficiary, instrument number, date of transaction and the amount therein, but in the operative part of the reasons recorded there is no mention of the nature of the transaction, much less to be established that the impugned transaction was in the nature of accommodation entries. In the present case the Assessing Officer proceeded to r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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