TMI Blog2017 (12) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... we find that the jurisdiction appears to have been validly exercised by the Assessing Officer. However, the observations made by us are only confined to the issue whether the jurisdiction to initiate reassessment proceeding had validly arisen against the petitioner for the Assessment Year 2010-11. No part of the observation made would be relevant to the merits of the dispute i.e. whether an addition on the above count is warranted in the entirety of the facts and circumstances of the case. That issue would remain to be examined in the consequential reassessment proceedings to be now conducted by the Assessing Officer in which the assessee would be within its right to rebut the allegation made against him and to lead such evidence in its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d material appears to have been seized indicating that these entries were mere accommodation entries. Also, it is admitted to the petitioner that it's the original assessment for the Assessment Year 2010-11 was made under Section 143(1) and not under Section 143(3) of the Act. Therefore in this case, though the requirement of the proviso to Section 147 of the Act does not apply at all, it has been submitted by learned counsel for the petitioner that the Assessing Officer has not recorded his reason to believe but mechanically issued the notice under Section 148 of the Act to the petitioner without applying his mind to the information received. Sri Praveen Kumar, learned counsel for the revenue on the other hand submits, the inform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. AAGCS7652F Peak Infocom Pvt. Ltd. 40,00,000 2009-10 Shunty Bunty Motors Pvt. Ltd. AAGCS7652F DRS Impex Pvt. Ltd. 25,00,000 2009-10 Total ₹ 65,00,000/- In view of the above and as per the material/information available in hand it is clear that the assessee company M/s. Shunty Bunty Motors Pvt. Ltd. has taken accommodation entries of ₹ 65,00,000/- during F.Y. 2009-10 relevant to A.Y. 2010-11, I have reason to believe that income of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'reasons to believe' are not in fact reasons but only conclusions, one after the other. The expression 'accommodation entry' is used to describe the information set out without explaining the basis for arriving at such a conclusion. The statement that the said entry was given to the Assessee on his paying unaccounted cash is another conclusion the basis for which is not disclosed. Who is the accommodation entry giver is not mentioned. How he can be said to be a known entry operator is even more mysterious. Clearly the source for all these conclusions, one after the other, is the Investigation report of the DIT. Nothing from that report is set out to enable the reader to appreciate how the conclusions flow therefrom. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- 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 Electronic Electic Bank from which entry given SBH Branch of entry given bank KB A/c No. Entry giving account 50038 The Assessing Officer after examining such information recorded his reason as below: Information so received has been gone through, The above said instruments are in the nature of accommodation entry, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 5,00,000/-. The details of the creditor and the mode of payment etc. had also been specified. However, neither the creditor had stated or was claimed to have stated that the said entry was an accommodation entry nor there was other material to suggest such fact. The Assessing Officer, of his own and without anything more entertained a belief that the aforesaid entry was an accommodation entry. In this context the Delhi High Court then concluded that the allegation of existing on accommodation entry was merely a conclusion recorded by the Assessing Officer in absence of any reason as to that belief or as to existence of such a conclusion. In the instant case, the facts are otherwise. The information received by the petitioner's A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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