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TMI Blog2020 (10) TMI 554X X X X Extracts X X X X X X X X Extracts X X X X ..... bad in law. 3. Ground Nos. 2, 3 and 4 challenge the addition on merits of the case. 4. Representatives of both the sides were heard at length, case records carefully perused and with the assistance of the ld. Counsel, we have considered the documentary evidences brought on record in the form of Paper Book in light of Rule 18(6) of ITAT Rules and have also perused the judicial decisions relied upon by both the sides. 5. Facts on record show that, in this case, the original assessment was framed u/s 143(3) of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short]. Subsequently, the Assessing Officer came to notice that the assessee company had received accommodation entries to the tune of Rs. 38 lakhs during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are placed in the paper book. The assessments of both these companies were framed on the returned income and no adverse inference whatsoever has been drawn in their case. 10. Observations of the AO at Para 5 are very relevant to show that the entire reopening is devoid of any application of mind. Para 5 reads as under: "During the post search investigation, spot visit enquiries made by the Investigation Wing revealed that the companies from whom cheques in lieu of cash were received by the assessee were non est. Spot visit enquiries were also made by deputing the Inspector of this Ward in respect of the above companies as mentioned in the chart in para-1 which as stated above are admitted by Shri Surinder Kumar Jain as his paper/dummy c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the immediately preceding year or apart from existing business any new business started during the year, please elaborate the same. 3. A comprehensive note on all sources of income. Details of premises occupied for business activities specifying whether these premises are on rent, on lease or self owned and their use i.e. office, factory, godown, show room, guest house, store, branch office etc. with their complete addresses and telephone numbers. 4. Name and complete addresses of all the Directors of the company with jurisdiction where they are being assessed to tax at present. 5. Name and addresses of shareholders with percentage of their shareholding. 6. Name andaddress of your entire sister concern with jurisdiction where they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in your case. 17. Details of month-wise & party-wise sales and purchases made during the year with total purchases and sales made till February 2007 and purchases and sales made in the month of March-2007 specifying credit purchases credit sales giving names, addresses and confirmation from the parties. 18. Cash flow statement for the year ending 31.03.2007. 19. Please furnish the details of your bank accounts such as Account No., name and address of the branch. Copies of all bank statement with complete narration of debit and credit entries mentioned therein for the previous year ending 31.03.2007. the details of l-'D account, if any maintained may also arc furnished. 20. Bank reconciliation statement of the previous years ending ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice u/s 133(6) of the Act to the three share applicant companies. Not only these companies complied with the notices received u/s 133(6) of the Act from the Assessing Officer, but all of them filed confirmations, confirming the transactions along with bank statements and copies of Income Tax returns. 17. On the basis of these documents, which are part of the paper book, I have no hesitation to hold that the observation of the Assessing Officer that the share applicant companies are non-est is without any basis. 18. The original assessment was completed after due verification from share applicant companies and share applicant companies have been assessed to tax u/s 153C read with section 153A of the Act post search and post enquiries ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng its stand. The non-rejection of the explanation in the Assessment Order would amount to the Assessing Officer accepting the view of the assessee, thus taking a view/forming an opinion. Therefore, in these circumstances, the reasons in support of the impugned notice proceed on a mere change of opinion and therefore would be completely without jurisdiction in the present facts. Accordingly, the impugned notice dated 27 March 2019 is quashed and set-aside." 21. Considering the facts in light of the aforesaid ruling of the Hon'ble High Court, notice u/s 148 of the Act is set aside and assessment order framed pursuant to such notice is, accordingly, quashed. 22. Since I have quashed the assessment, I do not find it necessary to dwell in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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