TMI Blog2017 (7) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... alt Refinery and Chemical Works Ltd.. All these contentions are legal contention, which requires investigation of facts, therefore, the interest of justice will be best sub served if the matter is set-aside and restored to the file of the Assessing Officer to denovo determine the issue on merits after giving opportunity of being heard to the assessee. Appeal of the assessee is allowed for statistical purposes only. - ITA No.1076/Mum/2012 - - - Dated:- 28-12-2016 - Shri Joginder Singh, Judicial Member, And Shri Rajesh Kumar, Accountant Member For The Assessee : Shri Sharad Patel For The Revenue : Shri Pratap Singh CIT-DR Shri A. Ramachandran-DR ORDER Per Joginder Singh (Judicial Member) The assessee is aggrieved by the impugned order dated 21/12/2011 of the Ld. First Appellate Authority, Mumbai. The assessee has raised following grounds:- 1. On the facts and circumstances of the case and in law the CIT(A) erred in confirming the Action of the Income Tax Officer, Ward - 4(3)(4), Mumbai of completing the assessment and passing the order u/s 147/148 of the Act by holding that the assessment is not bad in law since the re-opening of the assessment w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late proceeding, the said Narendra R. Shah has admitted of providing accommodation entries by various concern including the company M/s Surya Deep Salt Refinery and Chemical Works Ltd. The said list of beneficiaries provided by said Shri Narendra R. Shah with address in which ₹ 15 lakhs was shown to have been given to the assessee by way of share application from the bank account of M/s Surya Deep Salt Refinery and Chemical Works Ltd. Based upon this information, the Assessing Officer recorded the reasons, that income chargeable to tax has escaped assessment, amounting to ₹ 15 lakh, in the case of the assessee, as the assessee has received accommodation share entry from the M/s Surya Deep Salt Refinery and Chemical Works Ltd. Accordingly, notice u/s 148 of the Act was issued to the assessee and assessment was reopened. It is pertinent to mention here that no assessment was originally framed u/s 143(3) of the Act and return was originally processed u/s 143(1) of the Act. Notice u/s 148 of the Act was issued on 31/03/2010, which was beyond four year from the end of the Assessment Year. Reasons were communicated to the assessee in the course of hearing by the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... late proceedings, before CIT(A)-37, that he is providing bogus accommodation entries and name of the assessee was found mentioned in the details, furnished by said Narendra R. Shah, which conclusively proves that he is in control of M/s Surya Deep Salt Refinery and Chemical Works Ltd. and also engaged in the business of providing accommodation entries. Thus, the Assessing Officer has acted on specific information coupled with categorical admission of Shri Narendra R. Shah who was in control of M/s Surya Deep Salt Refinery and Chemical Works Ltd. and the said company has provided accommodation entries of ₹ 15 Lakh to the assessee which has led to the reason to belief that income has escaped assessment in the hands of the assessee to the tune of ₹ 15 lakh leading to reopening of the assessment. The contention of the assessee that Assessing Officer has not given the copy of statement of Shri Narendra R. Shah and has not allowed the opportunity of cross examine said Narendra R. Shah was met by Ld. Commissioner of Income Tax (Appeal) by remanding matter to the Assessing Officer with a direction to make necessary enquiry with the company M/s Surya Deep Salt Refinery and Chemi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ficer having received information from the investigation wing based upon the search and seizure operations carried out u/s 132 of the Act in the case of Shri Narendra R. Shah, wherein he admitted to have given accommodation entries to various parties through various concern controlled by him in which the name of assessee also appeared in one of the correspondence with the Ld. Commissioner of Income Tax (Appeal)-37 in his own appellate proceedings. It was submitted by the ld. counsel for the assessee that the whole reassessment proceedings are bad in law that Assessing Officer does not have original record and the reopening has been done without making any reference to the original records, which is bad in law as no conclusion can be drawn in such circumstances that any income has escaped assessment. The notice has been issued u/s 148 of the Act beyond the period of four year from the end of the Assessment Year. It was submitted that this is the first year of assessment of the assessee as assessee was incorporated in the previous year relevant to the impugned Assessment Year. The return of income was filed with Income Tax Officer-15(1)(1) while the notice u/s 148 was issued by Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by the Revenue. 2.3. On the other hand, the ld. DR, relied upon the order of the CIT(A) and confirmed that no case record is available with the Assessing Officer with respect to the original assessment records and processing of the return u/s 143(1) of the Act. he also confirmed that no statement of the assessee was recorded by the Revenue. 2.4. We have considered the rival submissions and perused the material available on record. We have observed that the assessee is engaged in the business of gold jewellery and is closely held company incorporated on 11/08/2003 and this is the first year of assessment of the assessee. The original assessment was not framed u/s 143(3) of the Act while the return of income was processed u/s 143(1) of the Act. The Assessing Officer has received information from the investigation wing, based upon searched and seizure operation u/s 132 of the Act, in the case of Shri Narendera R. Shah, that he is engaged in business of providing accommodation entries in lieu of cash, through various concerns, controlled by him and he has confirmed to have provided share application money of ₹ 15 lakh, as accommodation entries, in lieu of cash, to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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