TMI Blog2019 (2) TMI 1514X X X X Extracts X X X X X X X X Extracts X X X X ..... de. The failure of the Revenue in that regard does not clothe it with the power to carry out reassessment under Section 147/148. This Court is also of the opinion that the principal basis for reassessment appears to be the opinion of the Revenue that substantial cash transactions were carried out, having regard to the date of opening of the accounts, which were not verified. Now this Court is of the opinion that this reason is vague. The duty of the assessee is to disclose the bank statements for the relevant year, which it did. As to what inferences are to be drawn for the previous years is not within the remit of the AO and consequently of no relevance whatsoever at least in considering whether to issue or not to issue reassessment not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crores. Out of total credit ₹ 14.78 crores are in form of cash, as declared by the customer, company is trading in FMCG products in line of MLM model. On scrutiny over internet it was observed that the said company hold a website in the name of http://www.revolutionforever.com . On perusing the company website, various offers/schemes resembling of MLM companies are there business plan can generate unlimited income. Mr.Gurjeet Singh/Mr. Mann Ramanjeet / Mr. Abhishek Johri / Mr. Davinder Singh / Mr. Mukesh Kumar Sharma authorised signatory of Revolution Forever Mkt. Ltd. Mr. Gurjeet Singh is a common authorised for 9 current account no.035010200026895, 207010200007931 106010200016010 (REVOLUTION FOREVER MKT. LTD.), 207010200014261 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e main company having various office maintained by different entities at different locations. The main business of the company is to do online marketing and supply of goods through its various representatives, firms from different locations. (b) M/s Revolution Forever Marketing Pvt. Ltd. has following parties with whom it deals during the whole process (whose name also reflects in the STR). Further, the assessee has submitted all the bank accounts:- (i) M/s Marg Life Care and Financial Products Pvt. Ltd. (ii) M/s AVS Mann Co.HUF (i) M/s Revo Life care (ii) M/s J.S. Technologies, (iii) M/s Jivandeep Enterprise. (iv) M/s Venus Life Care. (v) Mr.Manoj Kumar Rai. (vi) Sh.Ranjit Kumar Bhardwaj. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specification of the AO, the dredging of that material on the basis of information and vague internet searches, did not constitute material information, which was withheld from the Revenue at the stage of the return filing. It was contended that the impugned re-assessment notice was preceded by some investigation [as evident from para 4 of the reassessment notice]. Learned counsel faulted the notice for being open ended stating that para 4(c) and the inferences drawn i.e. amount of ₹4.36 crores had escaped assessment for assessment year in question, taking into consideration credit entries of the aggregate ₹72.10 crores and ₹14.78 crores cash deposit since the opening of the above stated account on various dates , cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO in reply to the notice in the course of scrutiny proceedings. These include letters of confirmation from major sundry trade creditors, list of purchases from sundry trade creditors of value of more than ₹ 1 lakh, list of sundry creditors other than trade creditors; TDS Deduction Registers relating to distributors incentives, statement of rent and TDS and all detailed statements of accounts of the company. Consequently in the opinion of the Court this is a disclosure of all related material of fact. 7. The law relating to the reopening of assessment is well settled unless the AO is satisfied that in the original assessment, including scrutiny assessment, disclosure of relevant material facts were not made or if some new materi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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