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2015 (1) TMI 1440

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..... ng debit balance in the account of M/s R. K. Investments and was pertaining to the preceding assessment year 2001-02 and not the year under consideration - It is not clear as to how and in what manner the debit balance in the name of M/s R. K. Investments was treated as the escaped income of the assessee particularly when the amount was paid for purchasing the shares so it was not an entry provided by M/s R. K. Investments if it had been so then the amount was to be shown as credit in the name of M/s R. K. Investments and not the debit. Reasons recorded by the AO for reopening the assessment u/s 148 of the Act was not valid. We, therefore, considering the totality of the facts of the present case and by keeping in view the ratio laid down b .....

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..... in not quashing the instant reopening made by the ld. Assessing Officer (AO) u/s 147/148 of the Act for non communication of reasons as per Jurisdictional DHC order in case of Haryana Acrylic 308 ITR 38. 5. That on the facts and in the circumstances of the case and in law, learned CIT(A) erred in not deleting the addition made by the ld. AO amounting to ₹ 2,91,292/- especially in view of fact that no addition is made on reopening ground. 6. That on the facts and in the circumstances of the case and in law, learned CIT(A) erred in not deleting the addition made by the ld. AO amounting to ₹ 2,91,292/- without appreciating that no enquiry is made by Ld. AO at any time during asst. before making subject addition which is surmisical. .....

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..... of Investigation-I, New Delhi had sent a list containing the name of beneficiaries and operators of accommodation entries in Delhi. A perusal of the list shows that M/s Bhageria Finance & Investment Pvt. Ltd. whose jurisdiction lies with the undersigned, has been a beneficiary of entry to various entries provided by persons as mentioned below: Sl. No. Amount Date Provider 1 4,02,000 23.01.2001 R. K. Investment In view of the above credible information received from the DIT(Inv.)-I have reasons to believe that income to the tune of ₹ 4,02,000/- chargeable to tax has escaped assessment on account of failure on the part of assessee to disclose fully or truly all material facts necessary for assessment for the year under consideratio .....

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..... s ITO (2010) 329 ITR 110 (Del) Signature Hotels P. Ltd. Vs ITO and Another (2011) 338 ITR 51 Narmadha Chemicals (P.) Ltd. Vs ACIT (2013) 357 ITR 45 (Mad) CIT Vs Gangeshwari Metal P. Ltd. (2014) 361 ITR 10 (Del) 8. In his rival submissions the ld. DR supported the orders of the authorities below and further submitted that the case was reopened by the AO after making the proper inquiries and recording the reasons, therefore, reopening was valid. 9. We have considered the submissions of both the parties and carefully gone through the material available on the record. In the present case it is an admitted fact that the AO reopened the assessment by considering the opening balance in the account of M/s R. K. Investment amounting to ₹ 4,02, .....

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..... The annexure was not a pointer and did not indicate escapement of income. Further, the Assessing Officer did not apply his own mind to the information and examine the basis and material of the information. There was no dispute that the company, S, had a paid-up capital of ₹ 90 lakhs and was incorporated on January 4, 1989, and was also allotted a permanent account number in September, 2001. Thus, it could not be held to be a fictitious person. The reassessment proceedings were not valid and were liable to be quashed. 10. In the present case, it is noticed that the earlier also for the same assessment year i.e. assessment year 2002-03, the AO framed the assessment u/s 143(3)/147 of the Act vide assessment order dated 16.12.2005. The sa .....

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