TMI Blog2020 (12) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... reassessment on the basis of said information is not justified and legally valid, we quash the assessment order - Decided in favour of assessee. - I.T.A. No. 2489/Del/2019 - - - Dated:- 30-12-2020 - Shri H. S. Sidhu, Judicial Member And Before Shri Anil Chaturvedi, Accountant Member For the Assessee : Sh. R.S. Singhvi, Adv, Sh. Satyajit Goel, Adv For the Revenue : Sh. Prakash Duby, Sr. DR ORDER PER H.S. SIDHU, JM Assessee has filed the present appeal against the impugned order dated 15.01.2019 passed by the learned Commissioner of Income Tax (Appeals)-1 New Delhi relating to Assessment Year 2010-11 on the following grounds:- 1. The order passed by the Learned Commissioner of Income Tax (Appeals)- 1 ( Ld. CIT(A) ) under Section 250 of the Act is bad in law and on the facts and circumstances of the case. 2. That Ld. CIT(A) has erred in law and on the facts and circumstances of the case in upholding the order passed by the Ld. Assessing Officer ( Ld. AO ) which is barred by limitation. 3. The Ld. CIT(A) has erred in law and on the facts and circumstances of the case in upholding the order passed by the Ld. Assessing Officer ( Ld. AO ) which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2010-11 from the dummy/paper company managed and controlled by Shri Shirish C. Shah group who was engaged in the business of providing accommodation entries. The case of the assessee was reopened under section 147 of Income Tax Act, 1961 (hereinafter called the Act ) and notice under section 148 of the Act dated 23.03.2017 was issued after obtaining necessary sanction under section 151 of the Act from the competent authority which was duly served upon the assessee. In response to the same, authorized representative of the assessee was appeared and filed letter dated 25.01.2017 stating that return filed on 23.09.2010 be treated as true return of income in compliance to notice under section 148 of the Act. A search and seizure action under section 132/133A of the Act was carried out at the business and residential premises of Shri Shirish C. Shah entry operator during the course of post search / survey investigation, it has been evidently established that Shri. Shirish C. Shah is known entry provider and is involved in providing accommodation entries to the various beneficiaries companies / entities / persons through cheques through a number of paper / dummy companies in lieu of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer under section 147/143(3) of the I.T. Act assessee filed an appeal before the learned First Appellate Authority who vide order dated 15.01.2019 dismissed the appeal filed by the assessee. 5. Now the assessee has filed the present appeal before the Tribunal against the impugned order dated 15.01.2019 passed by the CIT(A)-1, New Delhi. 6. At the time of hearing, learned counsel for the assessee narrated the facts of the case and contents of the assessment order as well as the learned CIT(A) order. Mainly he argued regarding the validity of the reassessment proceedings and the addition of bogus share capital and premium received by the assessee company M/s Prraneta Industries Limited now known as Aadhar Venture Limited to the extent of ₹ 45 Lac. In this regard, he has also filed a synopsis and the case law to support the case of the assessee and requesting for the deletion of addition in dispute. He submitted that search and seizure action under section 132 was conducted at the residence and various premises of Shri. Shirish C. Shah who was alleged to be the main person involved in controlling various entities which were engaged in providing bogus accommodation entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Appellate Authority has rightly been upheld the impugned order therefore the appeal filed by the assessee may be dismissed. 8. We have heard both the parties and perused the orders passed by the Revenue Authorities and we are of the view that in this case, information was received from the investigation wing regarding the assessee was beneficiary of the accommodation entry. We have perused the order passed by the Revenue Authority especially assessment order and we are of the view that no doubt there is information from the investigation wing. But in this case no enquiry has been conducted by the Assessing Officer and the said information could not be said to be the tangible material. Therefore, on this ground reassessment was not justified. This finding is supported by the judgment of Hon ble Delhi High Court passed in the case of Pr. CIT vs. RMG Polyvinyl Ltd. [2017] 396 ITR 5 (Delhi) which is reproduced as under:- Section 68, read with section 147, of the Income-tax Act, 1961- Cash credit (Accommodation entry) Assessment year 2008- 09 Information was received from investigation wing that assessee-company was a beneficiary of accommodation entries received from cert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inbefore, the basic requirement that the AO must apply his mind to the materials in order to have reasons to believe that the income of the Assessee escaped assessment is missing in the present case. 10. For the sake of convenience, the relevant portion of the judgment of Hon ble Delhi High Court passed in the case of Signature Hotels P. Ltd. vs. Income-tax Officer [2011] 338 ITR 51 (Del) is reproduced below:- Held, allowing the petition, that the reassessment proceedings were initiated on the basis of information received from the Director of Income-tax (Investigation) that the petitioner had introduced money amounting to ₹ 5 lakhs during financial year 2002-03 as stated in the annexure. According to the information, the amount received from a company, S, was nothing but an accommodation entry and the assessee was the beneficiary. The reasons did not satisfy the requirements of section 147 of the Act. There was no reference to any document or statement, except the annexure. The annexure could not be regarded as a material or evidence that prima facie showed or established nexus or link which disclosed escapement of income. The annexure was not a pointer and did ..... X X X X Extracts X X X X X X X X Extracts X X X X
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