TMI Blog2021 (3) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... the notices and failed to furnish necessary information called for by the revenue. As carefully examined the reasons for reopening we find that the information received by the concerned department was specific, clear and unambiguous, so far the involvement of the assessee is concerned. The Assessing officer has observed that the main business of Harshaben Gosai and Kundan Mudaliar was to provide accommodation entries through bogus billing without actual delivery of goods and the assessee company was one of the beneficiaries amongst the other companies whose names were given by the Kundal Mudaliar. Assessing Officer further observed that the name of assessee company was also found in the bank statement of Mahavir Enterprise. Assessing Officer has further observed that the assessee company has received payment from PM Co. and made the payment of ₹ 9628150/- to J.K. Enterprise and the name of these two entities were also found in the bank statement of Mahavir Enterprise. Assessing Officer after receiving the information had verified the details of the assessee and called for information under Section 133(6) of the Act and also obtained bank statement of all concerned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05.2011 for the AY 2011-12 declaring total income ₹ 29,80,240/- and then same was processed under Section 143(1) of the Act, 1961. 2.2 The Assessing Officer has issued notice under Section 148 of the Act, 1961 based on the reason recorded dated 30.08.2018. In response to the impugned notices, the Assessee- Company filed its return of income on 06.08.2018. A copy of the reason recorded provided to the Assessee-Company. The Assessee-Company had raised an objection vide letter dated 04.09.2018, which was disposed of by passing speaking order dated 10.09.2018. Notices under Section 143(3) and 142(1) of the Act were issued, asking the Assessee-Company to submit its reply with respect to questioning contained therein. The Assessee- Company has not responded to the notice issued under the Act, 1961. 2.3 The reason for reopening recorded by the Assessee- Company reads as under;- 2. The erstwhile ITO, Ward-12(4), now ITO. Ward-6(1)(5), Ahmedabad has forwarded the information pertaining to Cemach Machineries Ltd. Gathered while finalizing the assessment of Smr. Harshaben Rashikbharti Gosai prop. Of Mahavir enterprise for A.Y. 2011-2012. During the course of assessment proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.03.2011 18,43,120/- - 2 11.03.2011 49,09,870/- - 3. 16.03.2011 45,69,500/- - 4. 16.03.2011 37,54,500/- - 5 17.03.2011 65,72,500/- - Total ₹ 2,16,49,490/- Entries reflected in the bank statement of J.K. Enterprise (A/c No.670011005614) No Date Amount received from P.M. Company (Rs.) Paid to P M Company (Rs.) 1. 16.03.2011 - 13,00,650/- 2. 16.03.2011 - 37,55,000/- 3. 17.03.2011 - 45,72,500/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Enterprise one Mrs. Harshaben Gosai in connivance with Kundan Mudlaliar, whose statement was recorded on oath under Section 131 (1)(a) of the Act, they are alleged to have provided accommodation entries through bogus billing activities to many business concerns and assessee was one of the beneficiaries and after verification it was further found that the name of Mahavir Enterprise was found in the bank statements of two above entities and during A.Y. 2011-12, the assessee company received payment of ₹ 2,08,49,490/- from PM Co. and made payment of ₹ 76,28,150/- to J.K. Enterprise and there was a direct monetary transaction by all the companies. After receiving that information, the Assessing Officer had verified the data of the assessee company and called for information under Section 133(6) of the Act and also obtained bank statements of PM Co and J.K. Enterprise, wherein, the aforesaid transactions made by the assessee company was found bogus, without actual delivery of the goods and the money doubted to the bank account of Mahavir Enterprise, who managed to provide accommodation entries through bogus billing activities and the assessee has received the benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gji 322 ITR 90 (Guj), (ii) Simplex Mills Ltd, 48 ITR 182 (SC), (iii) Chhugalmal Rajpa 79 ITR 603(SC), (iv) Batra Bhatta 321 ITR 526 (Delhi), (v) Sheonath Singh 82 ITR 147 (SC) , (vi) Sarthak Securities 329 ITR 110 (Delhi), (vii) Orient Craft 354 ITR 536 (Del) ; and (viii) Meenakshi Overseas (P) Ltd, 395 ITR 677 (Del). 8. In view of the above, Mr. K.M.Shah, the learned counsel appearing for the writ-applicant prays that the writ-application may be allowed. 9. Mrs. Mauna Bhatt, the learned Senior Standing Counsel appearing for the revenue has vehemently opposed the present writ application. She would submits that the authority is justified in reopening of the assessment as having enough material to substantiate to reopening and for forming a reasonable belief that income has escaped assessment. 10. Referring to the replied affidavit, she would submits that the transactions reflected in the bank account of the Assessee are not genuine and the entries during the year under consideration were provided by main two entities i.e. PM Co. and J.K. Enterprise, who have direct linked with the Mahavir Enterprise as the name of two entities were appeared in the ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment. Reasons must have live link with the formation of belief. 17. It is an undisputed fact that the return of income of the assessee was processed under Section 143(1) of the Act and was accepted without any scrutiny and no assessment stipulated under Section 2(40) of the Act was made. The record indicates that notices under Section 143(2) and 142(1) dated 28.09.2018 and 22.11.2018 respectively had been served upon the assessee and the assessee did not have responded to the notices and failed to furnish necessary information called for by the revenue. 18. We have carefully examined the reasons for reopening more particularly, para-2 to 5. We find that the information received by the concerned department was specific, clear and unambiguous, so far the involvement of the assessee is concerned. The Assessing officer has observed that the main business of Harshaben Gosai and Kundan Mudaliar was to provide accommodation entries through bogus billing without actual delivery of goods and the assessee company was one of the beneficiaries amongst the other companies whose names were given by the Kundal Mudaliar. The Assessing Officer further observed that the name of assessee comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as material to prima-facie come to conclusion that the assessee was beneficiaries of the accommodation entries as referred in the information received by the Assessing Officer and there was a live link between the material which suggested escapement of income and the information on the basis of which it could be concluded that income had escaped assessment. Therefore, we do not agree with the contention raised by the writ applicant that the Assessing Officer proceeded mechanically, without application of mind, based on the information received from the department. 24. The learned counsel appearing for the writ applicant raised the contention that the approval given under Section 151 is not legal and valid as it has been accorded without any satisfaction on the part of the authority. After perusal of the record, we find that the sanction order has not been placed by the assessee. There is no provision in the Act to provide a copy of the approval along with the reasons recorded. In absence of evidence, indicating that the authority concerned has mechanically accorded the sanction, the contention raised by the writ applicant cannot be accepted and has no merits. We have also examin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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