TMI Blog2015 (1) TMI 1364X X X X Extracts X X X X X X X X Extracts X X X X ..... pplied their minds to the facts of the case. Since the AO issued notice without proper recording of his satisfaction that he has reason to believe that income chargeable to tax had escaped assessment, it is of the firm view that reopening of assessment is bad in law - Decided in favour of assessee. - ITA No. 7263/Mum/2014 - - - Dated:- 29-1-2015 - Shri D. Manmohan, Vice President Appellant by: Shri Rakesh Joshi Respondent by: Shri Vijay Kumar Boara O R D E R Per D. Manmohan, V.P. This appeal by the assessee is directed against the order passed by the CIT(A)-27, Mumbai and it pertains to A.Y. 2008-09. 2. The following grounds were urged before the Tribunal: - 1. On the fact and circumstances of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO, shows that consequent to the search action conducted in the case of M/s. Mahasagar Securities Pvt. Ltd. and its related group companies data was collected by the CCIT (Central)- 1, Mumbai where from it is noticed that the assessee obtained accommodation entries to the tune of ₹ 4,18,437/- in the previous year relevant to AY 2008-09. However, AO mentioned that during the financial year 2007-08 there was one accommodation entry in respect of shares of M/s. Reliance N.R. through Alliance Intermediatories Network P. Ltd. According to the AO it is nothing but income from other sources not disclosed in his return of income. The last two paragraphs of the reasons are extracted for immediate reference: - From the data collected b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source not disclosed to the Department in his return of income and therefore the same is assessable to tax under section 69 of the Act. He accordingly brought to tax a sum of ₹ 4,18,437/-, which is referable to the shares of M/s. Reliance N.R., Jai Corporation, etc. 5. The learned CIT(A) confirmed the action of the AO. The contention of the assessee before the learned CIT(A) was that shares of only one company, i.e. M/s. Reliance N.R. were purchased through Alliance Intermediatories Network Pvt. Ltd. for a sum of ₹ 1,48,920/- and all the impugned shares were sold after one year for a sum of ₹ 6,24,156/- and it is not known as to how it was assumed that the assessee invested a sum of ₹ 4,18,437/- in this year. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 1,49,212/-. As could be noticed from the Balance Sheet there was no payment made by the assessee; it was shown as liability in the Balance Sheet. Even this transaction was only with regard to the shares of Reliance N.R. It is thus not known as to how he arrived at the figure of ₹ 4,18,437/-. It was therefore strongly submitted that there is non application of mind by the AO and therefore reopening of assessment is bad in law. 8. The learned D.R. placed before the Bench xerox copy obtained from the office of the CIT (Central)-1 to submit that shares of various other companies were shown to have been purchased though Alliance Intermediatories Network Pvt. Ltd. from April, 2007 to May, 2007, the total of which works out to &# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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