Feedback   New User   Login      
Tax Management India. Com TMI - Tax Management India. Com
Acts / Rules Notifications Circulars Tariff/ ITC HSN Forms Case Laws Manuals Short Notes Articles SMS News Highlights
        Home        
Extracts
Home List
← Previous Next →

Kanpur Sheetalaya Private Limited Thru' Its Director Versus Union of India Thru' Its Secy. & 2 Others

2017 (12) TMI 254 - ALLAHABAD HIGH COURT

Reopening of assessment - accommodation entry - validity of jurisdiction to initiate reassessment proceeding against the petitioner - Held that:- The information received by the petitioner's Assessing Officer is specific, both as to the amount as also to the character of it being an accommodation entry. Not only that the information states that the entries are accommodation entries but that information further states that the person who is shown as a creditor in books of account of the assessee .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

nt : S.S.C. ORDER Heard Sri Rahul Agarwal, learned counsel for the petitioner Sri Praveen Kumar, learned counsel for the respondents. This writ petition has been filed to challenge the reassessment proceedings for the Assessment Year 2010-11 initiated by issuance of a notice under Section 148 of the Income Tax Act (hereinafter referred to as the Act) dated 31.03.2017. A perusal of the reason to believe recorded for issuance of the aforesaid notice brings out the fact that the Assessing Officer r .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

appears to have surfaced in the course of the search proceedings conducted against certain entities described as Himanshu Verma group wherein statements were also recorded and 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 requireme .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e petitioner claims made the investment in the petitioner company, had himself denied the same. He further submits, this aspect was never examined during the original assessment proceedings to any extent and therefore the reason to believe in the form recorded is sufficient to sustain the jurisdiction of the Assessing Officer. We find that for the jurisdiction under Section 147 of the Act to arise, there must exist necessary material or information on the basis of which a reason may arise to any .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

recorded his reasons to believe, in the following terms:- "M/s Kanpur Sheetalaya Private Limited has taken accommodation entry from Himanshu Verma Group in F.Y. 2009-10 as follows: Name of the Beneficiary PAN Name of Himanshu Verma Group Company Amount (Rs.) Kanpur Sheetalaya Pvt. Ltd. AAACK5509K Fine Tradelink Pvt. Ltd. 20,00,000 Kanpur Sheetalaya Pvt. Ltd. AAACK5509K Grace Exim Pvt. Ltd. 15,00,000 Total ₹ 35,00,000/- I have gone through the report of the Assistant Director of Incom .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e notice under Section 148 of the I.T. Act, 1961." Learned counsel for the petitioner further submits, the objection as raised has not been dealt with and decided by the Assessing Officer. From a perusal of the order passed on the objections filed by the petitioner, we find that he has first referred to the information received by him and then relied on the material received from the Investigation Wing of the revenue which is specific. Then while it may be true that the assessing officer ha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

petitioner by merely stating or alleging that the petitioner had obtained accommodation entries without explaining the basis for referring such conclusion. In this regard reliance has been placed on a judgement of the Delhi High court in the case of PCIT Vs. Meenakshi Overseas Pvt. Ltd., wherein it has been held as below: "22. As rightly pointed out by the ITAT, the 'reasons to believe' are not in fact reasons but only conclusions, one after the other. The expression 'accommodat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Investigation report of the DIT. Nothing from that report is set out to enable the reader to appreciate how the conclusions flow therefrom." In the first place, it is noted that the aforesaid decision of the Delhi High court arises from a regular appeal filed under Section 260 A of the Act. Then, in that case, the reassessment order had been made wherein addition had been made on account of certain accommodation entry having been alleged by the revenue. The said reassessment order was chall .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

as been extracted in that judgement was to the following effect: "Reasons for the belief that income has escaped assessment: In this case, information has been received from the Director of Income Tax, (Investigation) New Delhi that the Assessee has received amount of ₹ 5,00,000/- as follows: Beneficiary's Name Meenakshi Overseas P. Ltd Beneficiary Bank Name State Bank of Hyderabad Beneficiary Bank Branch Koral Bagh Value of entre taken 500,000/- Instrument no. by which entry take .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mmodation entry given, who is a known entry operator as per the report of the Investigation Wing. In view of these facts, the alleged transaction is not the bonafide one. Therefore, I have reason to believe that an income of ₹ 5,00,000/- has escaped assessment in the AY 1004-05 due to failure on the part of the Assessee to disclose fully and truly all material facts necessary for its assessment so far as this amount is concerned. Therefore, this case is fit for issuing notice under Section .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

uestion had arisen before the Delhi High Court whether any reason to believe could have arisen to Assessing Officer that the entry of ₹ 5,00,000/- was an accommodation entry. As is clear from the reasons to believe (extracted above), in that case the information received was neutral. The Director of Income Tax (Investigation) had only communicated to the Assessing Officer the fact of that assessee having received ₹ 5,00,000/-. The details of the creditor and the mode of payment etc. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Discussion Forum
what is new what is new
 


Share:            

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version