TMI Blog2019 (9) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... case has reopened the assessment on the basis of report of the investigation wing and there appears to be no independent application of mind by the Assessing officer for reopening of the case, therefore, the reassessment proceeding initiated by the Assessing Officer are not proper. Therefore, hold that the reassessment proceeding initiated by the Assessing Officer is illegal and accordingly the subsequent proceedings also become illegal and void - Decided in favour of assessee. - ITA No.6702/Del/2018 - - - Dated:- 21-8-2019 - SH. R. K. PANDA, ACCOUNTANT MEMBER For The Appellant : Sh.Anil Kumar Jain, CA For The Respondent : Shri S. L. Anuragi, Sr. DR ORDER P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s. Finage Lease Finance P. Ltd. asking for documents regarding its transaction with the assessee. It was replied by the said company that it has given an amount of ₹ 5,50,000/- through cheque No. 000111 dated 24.12.2007 drawn on Kotak Mahindra Bank. The Assessing Officer asked the assessee to produce the Director of above said company. He also asked the assessee to substantiate the identity and creditworthiness of the Investor Company and genuineness of the transaction. However, the assessee failed to produce the director of the investor company. Rejecting the various explanation given by the assessee and relying on various decisions the Assessing Officer made addition of ₹ 5,50,000/- to the total income of the assessee u/s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Page | 4 of hearing. 5. The Ld. Counsel for the assessee at the outset submitted that the reopening of the assessment by the Assessing Officer is illegal and void ab initio. Referring to the reasons recorded by the Assessing Officer, copy of which is placed at pages 20 and 21 of the paper book he submitted that the reasons have been recorded in a mechanical manner and without independent application of mind by the Assessing Officer. He submitted that the Assessing Officer has simply mentioned that as per the information received from the Investigation Wing of the department vide letter dated 12.03.2013 that the assessee during the financial year 2007-08 has received total entries of ₹ 5,50,000/- from the entities man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax return, auditor report, board resolutions, directors report and return of allotment of shares before the Assessing Officer. Further the company M/s. Finage Lease Finance P. Ltd is having net worth of ₹ 14.57 crores. He submitted that the investor company has complied with the notice issued u/s. 133 (6) by the Assessing Officer. 7. So far as the production of the director is concerned he submitted that assessee had requested the Assessing Officer to call them by issuing notice u/s. 131 which was not done by the Assessing Officer. He submitted that the assessee has discharged the onus cast on it by proving the various ingredients of section 68. Therefore, the addition made by the Assessing Officer and sustained by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay High court [2013] 33 taxmann.com 454 (Bomba) /[2013] 215 Taxman 109 (Bombay) (MAG.) 8. PCIT Vs. Paramount Communications (P.) Ltd. Delhi High Court [2017] 79 taxmann.com 409 (Delhi)/[2017] 392 ITR 444 (Delhi). 9. Paramount Communication (P.) Ltd. Vs PCIT Supreme Court 2017-TIQL-253- SC-IT 10. - Amit Polyprints (P.) Ltd. Vs PCIT Gujarat High Court T20181 94 taxmann.com 393 (Gujarat) 11. Aaspas Multimedia Ltd. Vs PCIT Gujarat High Court T20171 83 taxmann.com 82 (Gujarat) 12. Murlibhai Fatandas Sawlani Vs. ITO Gujarat High Court 2016-TIOL-370- HC-AHM-IT 13. Ankit Agro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment on the basis of report of the investigation wing and there appears to be no independent application of mind by the Assessing officer for reopening of the case, therefore, the reassessment proceeding initiated by the Assessing Officer are not proper. I, therefore, hold that the reassessment proceeding initiated by the Assessing Officer is illegal and accordingly the subsequent proceedings also become illegal and void. Since the assessee succeeds on this legal ground, therefore, the ground challenging the addition of ₹ 5,50,000/- u/s. 68 of the IT Act on merit becomes academic in nature and, therefore, the same is not being adjudicated. The grounds raised by the assessee are accordingly allowed. 11. In the result ..... X X X X Extracts X X X X X X X X Extracts X X X X
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