TMI Blog2020 (11) TMI 1007X X X X Extracts X X X X X X X X Extracts X X X X ..... ER PER PRASHANT MAHARISHI, A. M. 1. This appeal is filed by assessee against the order of COMMISSIONER OF INCOME TAX (Appeals) 31, New Delhi dated 23rd of January 2019 for assessment year 2008 09 wherein appeal filed by the assessee against the order of The Income Tax Officer, Ward 23 (1), New Delhi passed u/s 147 read with Section 144 of The Income Tax Act, 1961 on 28th of March 2016 making an addition of ₹ 2,036,000 u/s 68 of The Income Tax Act to the returned income of ₹ 30,770/- , was dismissed. 2. The assessee has raised the following grounds of appeal in ITA No. 2200/Del/2019 for Assessment year 2008-09:- 1. Because the action for initiation, continuation and conclusion of reassessment proceedings at an amount of ₹ 20,66,770/- is being challenged on facts and law. 2. Because the action for the assumption of jurisdiction of reassessment proceedings and the misapplication of the jurisdiction sanction being a fit case for issue of notice is being challenged on facts and law. 3. Because the action for initiation of re-assessment proceedings u/s 147 is unreasonable since while recording reasons, there is no application of mind much l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hri Surendre jain . The investigation wing of the Department had carried out such/survey operations against the entry operators Shri Surender Jain and his brothers Ravidner Jain. During the course of post such investigation it has been immediately established that Sri Surendra Kumar Jan is in the business of providing accommodation entries to various beneficiaries companies/entities/persons through cheques through a number of paper and dummy companies in lieu of cash. These dummy companies are totally managed and controlled by Sri Surendra Kumar Jan and his brothers Ravidenr Jain. During the course of search action, vast number of incriminating documents were found and seized. These documents include date -wise hand written cheque books and cashbooks maintained by Shri Sureidner Kumar Jain and his brother over a Long period of time around six years. In these cheque-books and cashbooks details of cheques provided to the beneficiary companies entity/ persons were recorded. 2. It is informed that from the verification of the documents seized, it clearly appears that the following accommodation entries from various paper companies of the Surender Kumar jain group was provided to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for different annexures giving the details of the entry operator, various companies operated by the entry operator, details of accounting record in the form of cash book being part of seized material from entry operator. 6. Thereafter, assessee aggrieved with the order of the learned assessing officer, preferred an appeal before the learned CIT A who dismissed the appeal of the assessee holding that it is clearly established that the appellant had obtained accommodation entry of the share capital from two different companies of ₹ 10 lakhs each amounting in all to ₹ 20 lakhs which was added by the learned assessing officer u/s 68 of the act along with the commission of ₹ 36,000. He thus confirms the action of the learned assessing officer. 7. Therefore, assessee aggrieved with the order of the learned CIT A has preferred this appeal before us. The assessee adverting to ground number [2] [3] of the appeal submitted that there is no application of mind by the learned assessing officer in recording reasons for reopening of the assessment and he merely relied upon the report of the investigation wing. He further submitted that the reasons recorded are vag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not picked up for the scrutiny u/s 143 (3) of the act and therefore it cannot be tested on the same logic and reasoning which can be tested for the assessment already made by the learned assessing officer u/s 143 (3) of the act. He therefore stated that there is no infirmity in the reasons recorded by the learned assessing officer for reopening of the assessment. 10. On the merits of the case he submitted that the learned authorised representative has nothing to say and it is conclusively proved by the learned assessing officer and the learned and CIT A that the accommodation entries of been obtained by the assessee from the entry operator. He therefore submitted that the appeal of the assessee deserves to be dismissed on all the counts. 11. We have carefully considered the rival contention and perused the orders of the lower authorities. Here, as per ground number 2 and 3 of the appeal the learned authorised representative has referred to the reasons recorded by the learned assessing officer and challenged the same stating that the learned assessing officer has failed to apply his mind to the information available and has recorded vague reasons. The reasons recorded by th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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