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TMI Blog2020 (7) TMI 458X X X X Extracts X X X X X X X X Extracts X X X X ..... a leaves. It filed its return of income on 30.09.2011 declaring total income of Rs.18,43,380/. The assessment was completed u/s 143(3) of the Act on 26.03.2014. The assessment was re-opened on u/s 147 of the Act by issue of a notice dated 29.03.2018 u/s 148 of the Act. The assessee was given the reasons of re-opening. In response, the assessee filed a letter dated 31.05.2018 requesting the AO to treat the original return filed by it as return filed in response to the notice u/s 148 of the Act. In this letter dated 31.05.2018 the assessee raised various objections to the re-opening of the assessment. On merits, the assessee explained that the amount of Rs.10 lakhs was taken as loan from M/s. Rexnox Trexim Pvt. Ltd. on 09.08.2010 and that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished to prove the identity and creditworthiness of the creditor as well as the genuineness of the transaction. 7. The ld. DR on the other hand opposed the contentions and submitted that the assessee is part of the chain of jama-kharchi companies and had no real business. He submitted that the re-opening was based on the information received from the Investigation Wing of the Department. He took this Bench to the reasons and submitted that the AO has sufficient material to come to a conclusion that income subject to tax might have escaped assessment. He relied on the order of the AO as well as the ld. CIT(A). On merits, he submitted that the cash credits of Rs.10 lakhs was not explained. 8. Rival contentions heard. On a careful consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of bank statements of the concern named in the information also the bank account statements intermediary/beneficiary concerns maintained with various bank, 13 cash/fund deposit bank account was identified. From the analysis of MCA data and verification of ITD Module, it is gathered that these companies are paper/shell companies having no real existence & business activities and involved in providing accommodation entries in the form of bogus share capital/share premium, pre-arranged bogus LTCG/STCL.& unsecured loans etc. to various beneficiaries/parties in lieu of commission in cash. It is also observed from the data base of the department that some of the concerns mentioned in the information are interlinked and existing merely on pape ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rexnox Trexim Pvt. Ltd. The bank statement of M/s Rexnox Trexim Pvt. Ltd from Axis Bank bearing A/c No. 017010200031329 sent by Inv. Wing revealed that on 09.08.2010Rs. 10,00,000/- was debited from this account to make payment to M/s Bajaj Parivahan Pvt. Ltd. 5. The case of the assessee for the A.Y. 2010-11 was completed on 26.03.2014 determining income of Rs. 2461160/- as against returned income of Rs. 1843380/-During the course of assessment the transaction as detected by Investigation Wing was not looked into. 6. So considering the above financial affairs of the assessee as revealed from the returns of income and the other materials gathered, the credit of Rs. 45,00,000/- prima facie represents undisclosed income of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t on this loan and deducted tax at source. The loan has been repaid within the same year. On these facts, it is wrong on the part of the AO to record at para 7 of his reasons that the assessee has failed to disclose fully and truly all material facts necessary for assessment. Merely alleging that there is failure to disclose, would not serve the purpose. In this case, a factually wrong allegation has been made that the amount of Rs.10 lakhs has not been fully and truly disclosed. Re-opening of assessment on such wrong reasons cannot be upheld. 12. The Hon'ble Delhi High Court in the case of Haryana Acrylic Manufacturing Co. vs. CIT and another (2009) 308 ITR 38 (Del) held as follows: "Merely having a reason to believe that income had esc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of DCIT vs. Rohini Builders 256 ITR 360 (Guj) held as under:- "It has also proved the capacity of the creditors by showing that the amounts were received by the asses see by account payee cheques drawn from bank accounts of the creditors and the assessee is not expected to prove the source of the credits in its books cf account but not the source of the source as held by the Bombay High Court in the case of Orient Trading Co. Ltd, vs. CIT [19631 49 ITR 72317. . The genuineness of the transaction is proved by the fact that the payment to the assessee as well as repayment of the loan by the assesse to the depositors is made by account payee cheques and the interest is also paid by the assessee to the creditors by account payee che ..... X X X X Extracts X X X X X X X X Extracts X X X X
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