TMI Blog2021 (7) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... have been held to be illegal. Since the AO, in the instant case, has reopened the assessment on the basis of report of the Investigation Wing and there appears to be no independent application of mind by the AO for reopening of the case, therefore, the reassessment proceedings initiated by the AO in the instant case, in our opinion, is not proper. Decided in favour of assessee. - ITA No. 8027/Del/2019 - - - Dated:- 7-7-2021 - SHRI R. K. PANDA , ACCOUNTANT MEMBER For the Appellant : Rohit Tiwari , Advocate For the Respondents : R. K. Gupta , Sr. DR ORDER This appeal filed by the assessee is directed against the order dated 30th May, 2019 of the CIT(A)-7, New Delhi relating to assessment year 2011-12. 2. The grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income on 30th September, 2011 declaring a loss of ₹ 3,91,500/-. The return was processed u/s. 143(1) of the Act accepting the return of income. Subsequently, information was obtained from the DDIT (Inv.)-III, Gurugram vide letter No. F. No. ADIT (Inv.)III/Gurugram/2017-18/1428 dated 19.03.2018 according to which Shri Anirudh Joshi had used seven non-genuine concerns for providing accommodation entries which were controlled and managed by him. Out of seven non-genuine firms/concerns, KRAC Securities Pvt. Ltd. was one of the non-genuine firms/concerns which had given accommodation entry of ₹ 3 lakh on 14th February, 2011 to M/s. PV Corporate Advisory Services Pvt. Ltd., i.e., the assessee during the financial year 2010-11. On th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld. Counsel for the assessee, referring to the submissions made before the AO as well as before the CIT(A), submitted that the assessee had taken the loan from KRAC Securities on 14th February, 2011 for meeting certain monthly expenses like rent, salary, telephone expenses and miscellaneous expenses of the company. The loan was repaid on 31st March, 2010 itself vide cheque No. 122961 drawn on State Bank of Patiala (now State Bank of India) to KRAC Securities Pvt. Ltd. However, the cheque was cleared from the said bank on 19th April, 2011. Referring to the notice issued u/s. 147 of the Act, he submitted that the information received from the ADIT (Inv.) clearly directed the AO to initiate the proceedings u/s. 147 of the Act. A perusal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... els (P) Ltd. Vs. ITO of Hon'ble Delhi High Court reported in 338 ITR 51 4. CIT Vs. Insecticides India Ltd. of Hon'ble Delhi High Court reported in 357 ITR 330 5. PCIT Vs. G G Pharma India Ltd. of Hon'ble Delhi High Court (2017) 81 taxmann.com 109 (Delhi) 6. Neelkanth Plywood Ltd. vs. ITO (ITA No. 6702/Del/2018) 7. ACIT vs. Dhariya Construction Co. (2011) 197 Taxman 202 (SC) 8. Charanjiv Lal Aggarwal vs. ITO (2017) 88 taxmann.com 845 (Amritsar Tribunal) 9. CIT vs. Indo Arab Air Services (2015) 64 taxmann.com 257 (Delhi) 8. So far as the merit of the case is concerned, he submitted that to prove the identity and credit worthiness of the loan creditor and genuineness of the transaction, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the paper book, shows that the reopening was made on the basis of the report of the Investigation Wing and there is no independent application of mind by the AO for the reopening. The Hon'ble High Court in a number of cases have held that the reopening on the basis of the report of the Investigation Wing without independent application of mind by the AO is not valid. Accordingly, the reassessment proceedings which were based on the report of the Investigation Wing and without independent application of mind by the AO have been held to be illegal. Since the AO, in the instant case, has reopened the assessment on the basis of report of the Investigation Wing and there appears to be no independent application of mind by the AO for reopeni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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