TMI Blog2019 (10) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... he same is hereby quashed. Accordingly, the ground raised by the assessee is allowed. - ITA No. 2728/Del/2018 - - - Dated:- 16-10-2019 - Shri H.S. Sidhu, Judicial Member For the Assessee : Sh. Raj Kumar, CA Sh. Sumit Goel, CA For the Department : Ms. Ekta Vishnoi, Sr. DR. ORDER This appeal filed by the assessee is directed against the order passed by the Ld. CIT(A)-21, New Delhi on 28.03.2018 in relation to the assessment year 2008-09 on the following grounds:- 1. That under the facts and circumstances of the case the initiation of proceedings u/s. 147/148 is without jurisdiction, mechanical, without application of mind, illegal and unsustainable in law as well as on merits. 2. That in the absence of approval u/s. 151 as per law and also, since, without application of mind and mechanical, the whole proceedings are illegal, without jurisdiction and unsustainable. 3. That under the facts and circumstances, the addition of ₹ 13,26,000/- u/s. 69A as alleged unexplained cash deosit in savings bank account is unwarranted, unjustified and unsustainable in law a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted in his savings account was withdrawn from this joint account. After perusing the same, the AO observed that there is no cash withdrawal from this account. The Assessee in his submissions dated 28.12.2015 claimed that he was gifted various amounts of money at various times during the relevant F.Y. by his mother in laws and his cousin. The assessee also claimed the he got interest free loans from friends during the FY and has also arranged some money from the sale of gold jewellery by his family members. The assessee filed the confirmation on plain paper from the concerns persons and furnished the bank statement of his mother in law and cousin. Assessee furnished the raw slips from Bhagwati Jewellers, Kharkhoda, Sonipat issued in name of different family members of the family of the assessee. But on asking, he could not furnish the original bills for the jewellery. Therefore, the AO has held that assessee could not explain the entire amount of cash deposits of ₹ 13,26,000/- and hence, added the same to the income of the assessee and assessed the income of the assessee at ₹ 14,27,510/- u/s. 143(3) of the Act vide order dated 23.03.2016. Against the assessment order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that apart from relying on the decision of the Ld. CIT(A), the following case laws may kindly be considered with regard to reopening of cases u/s 147 of I.T. Act : 1. Yogendra kumar Gupta Vs ITO (51 taxmann.com 383) (SC)/f20141 227 Taxman 374 (SC) (Copy enclosed) where Hon ble Supreme Court held that where subsequent to completion of original assessment, Assessing Officer, on basis of search carried out in case of another person, came to know that loan transactions of assessee with a finance company were bogus as said company was engaged in providing accommodation entries, it being a fresh information, he was justified in initiating reassessment proceeding in case of assessee. 2. Raymond Woollen Mills Ltd. v. ITO And Others [236 ITR 341 (Copy Enclosed) where Hon ble Supreme Court held that in determining whether commencement of reassessment proceedings was valid it has only to be seen whether there was prima facie some material on the basis of which the department could reopen the case. The sufficiency or correctness of the material is not a thing to be considered at this stage. 3. Yuvraj v. Union of India Bombay High Court [2009 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed. Information regarding bogus purchase by assessee received by DRI from CCE which was passed on to revenue authorities was tangible material outside record to initiate valid reassessment proceedings. 10. Amit Polyprints (P.) Ltd. Vs PCIT Gujarat High Court T2018l 94 taxmann.com 393 (Gujarat) Where reassessment proceedings were initiated on basis of information received from Investigation wing that assessee had received certain amount from shell companies working as an accommodation entry provider, reassessment could not be held unjustified. 11. Aaspas Multimedia Ltd. Vs PCIT Gujarat High Court T20171 83 taxmann.com 82 (Gujarat) Where reassessment was made on basis of information received from Principal DIT (Investigation) that assessee was beneficiary of accommodation entries by way of share application provided by a third party, same was justified. 12. Murlibhai Fatandas Sawlani Vs ITO Gujarat High Court 2016-TIQL-370-HC- AHM-IT It is not open to the assessee to object to the reopening by asking the AO to produce the source from where the AO has gathered the information for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecorded for issue of notice u/s. 148 of the Act as well as the Paper Book filed by the Assessee containing pages 1-41 of the Paper Book in which he has attached the copy of AIR information; copy of reasons recorded; copy of approval performa u/s. 151; letter dated 26.2.2015 isued by AO; letter dated 12.3.2015 issued by AO; cash flow statement; confirmation from Rama Devi; bank statement of Ram Devi; copy of PAN card of Rama Devi; confirmation from Shyam Sunder; bank statement of Shyam Sunder; copy of PAN card of Shyam Sunder; confirmation from Virender Kumar; confirmation from Eshwar Dutt; Confirmation from Dayanand Sharma; jewellery sale bill to assessee; jewellery sale bill to Rohtash (2 in no s); jewellery sale bill to Kumud; sub. To CIT dated 18.8.17; RR dated 27.10.17; Sub. To CIT(A) dated 7.12.17 (Rejoinder to RR) and Sub. To CIT(A) dated 15.2.2018 and especially the page no. 2-3 of the Paper Book which is a copy of performa for recording the reasons for initiating proceedings u/s. 148 and for obtaining approval of Addl. CIT, Range-65, New Delhi in which Addl. CIT, Range-65, New Delhi has granted the approval in a mechanical manner for issuing notice u/s. 148 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of satisfaction) High Court by impugned order held that where Joint Commissioner recorded satisfaction in mechanical manner and without application of mind to accord sanction for issuing notice under section 148, reopening of assessment was invalid Whether Special Leave Petition filed against impugned order was to be dismissed Held, Yes (in favour of the Assessee). 5.2 In the background of the aforesaid discussions and respectfully following the precedents, as aforesaid, I am of the considered view that approval granted by the Addl. CIT,Range-65, New Delhi is a mechanical and without application of mind, which is not valid for initiating the reassessment proceedings issue of notice u/s. 148 of the I.T. Act, 1961 and is not in accordance with section 151 of the I.T. Act, 1961, thus, the notice issued u/s. 148 of the Act is invalid and accordingly the reopening in this is bad in law and therefore, the same is hereby quashed. Accordingly, the ground no. 2 raised by the assessee is allowed. Since the other grounds were not raised by the Assessee, the same are dismissed as such. Accordingly, the assessee s appeal is partly allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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