TMI Blog2019 (1) TMI 1483X X X X Extracts X X X X X X X X Extracts X X X X ..... aid a sum of ₹ 2.70 crores to the assessee. Whatever be the nature of existence of Avance, its dealings with other individual entities and dealings of said S.C.Shah, we simply fail to appreciate how the AO in the present case asserts that in case of the assessee income chargeable to tax has escaped assessment. Even going by the information at the command of the Assessing Officer, the assessee having purchased the NPA from Allahabad Bank, received the payment of ₹ 2.70 crores from Avance. This has nothing to do with the alleged dubious dealings of Avance at the instance of S.C.Shah. In clear terms, the very formation of the belief by the Assessing Officer that income chargeable to tax in the hands of the assessee had escaped a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act ( the Act for short) on 25th March, 2014. To reopen such assessment the Assessing Officer issued the impugned notice which as can be seen was done beyond the period of four years from the end of assessment year. In order to issue the notice, the Assessing Officer had recorded following reasons: The assessee, M/s Asset Reconstruction Company India Ltd. assessed with the charge of the ACIT 6(1)(2),Mumbai, filed its return of income on 14.10.2010 at ₹ 86,82,25,240/Assessment u/s 143(3) of the Act was completed on 26.03.2013 determining total income at ₹ 89,66,70,995/as per ITD system. 2. Vide letter dated 25.03.2017, the DCIT CC 2(2), Mumbai has informed that M/s Asset Reconstruction Company India Ltd. has had de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any India Ltd has had dealings with Avance Technologies Ltd., which was indulged in providing bogus accommodation entries and that income chargeable to tax to the tune of ₹ 2.70 Crore has escaped assessment in F.Y. 2010-11 i.e. A.Y. 2011-12. 5. In view of the above, I have reason to believe that income chargeable to tax has escaped assessment within the meaning of section 147 of the Income Tax Act, 1961 on account of the above mentioned transaction and that this escapement is due to the failure of the assessee company to disclose fully and truly all material facts relevant to the determination of its correct income. It is clear from the above that the income chargeable to tax has escaped assessment for the amount of One Lac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see i.e. ARCIL has dealing with Avance which in turn has indulged in dealing with various accommodation entries and therefore, income chargeable to tax of ₹ 2.70 crores had escaped assessment. 7. In our opinion, the very premise of Assessing Officer to form a belief that income chargeable had escaped assessment is completely invalid. As per the information received by the Assessing Officer and to which the assessee raised its no dispute, the assessee had as an Asset Reconstruction Company dealt with Avance. Avance was a borrower of Allahabad Bank. The assessee purchased NPA from Allahabad Bank. By way of recovery, Avance paid a sum of ₹ 2.70 crores to the assessee. Whatever be the nature of existence of Avance, its dealing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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