TMI Blog2019 (11) TMI 504X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the column account number entry giving account. Thus, AO has committed a number of mistake in the reasons recorded for issue of notice u/s 148. He also mentioned that he has reasons to believe that an income of ₹ 10,00,000/- represents the assessee s own unaccounted income which has escaped assessment whereas the amounts received as per the bank statements is only of ₹ 5,00,000/-. This shows as absolute lack of application of mind on the part of the AO which makes the assessment null and void ab initio . The amount of ₹ 10,00,000/- is not supported by any correct cheque number whereas the allegation is that the assessee has received accommodation entry to the tune of ₹ 10,00,000/-. In our considered opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making addition of ₹ 10,00,000/- on account of share capital u/s 68 of the Income Tax Act and has further erred in making the double addition in this regard. 4. That in any case and in any view of the matter, action of Ld. CIT(A) in confirming the action of Ld. AO in making the addition of ₹ 10,00,000/- on account of share capital is bad in law and against the facts and circumstances of the case. 5. That having regard to the facts and circumstances of the case, Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in charging intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g account Bank from which entry given Branch of entry giving bank A/c No. entry giving account 500000 151129 07.10.04 Keshav Sehkari Karol Bagh Umesneh Securities Pvt. Ltd. 625 500000 151129 07.10.04 Umesneh Securities Pvt. Ltd. Karol Bagh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orded shows that the assessee has received ₹ 10,00,000/- as accommodation entry. He further pointed out that the value of the entry taken, the instrument number by which entry taken, date of which entry taken, name of the account holder of entry giving account, branch of the entry given bank, account number of entry giving account have all been wrongly mentioned in the reasons recorded by the Assessing Officer. 6. On the other hand, the ld. DR strongly supported the order of the Assessing Officer with regard to recording of the reasons. He has submitted that the reasons have been duly recorded on application of mind based on the investigation and after obtaining necessary approval from the Addl. CIT a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... heque number whereas the allegation is that the assessee has received accommodation entry to the tune of ₹ 10,00,000/-. In our considered opinion, the basis of reopening itself is based on wrong facts therefore, the same cannot be upheld. In Hindustan Lever Limited v. R.B. Wadkar, ACIT (2004) 268 ITR 332 (Bom.), a Division Bench has enumerated the following conditions with respect to recording of reasons which should form the unimpeachable code for the Assessing Officers: 1. The reasons are required to be read as they were recorded by the Assessing Officer; 2. No substitution or deletion is permissible; 3. No additions can be made to those reasons; 4. It is for the As ..... X X X X Extracts X X X X X X X X Extracts X X X X
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