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TMI Blog2016 (8) TMI 1547X X X X Extracts X X X X X X X X Extracts X X X X ..... the reasons recorded are invalid and contrary to law and facts and there is no satisfaction as per law U/S 151 of the Act. 3. That having regard to the facts and circumstances of the case Ld. CIT(A) has erred in law and in confirming the action of Ld. AO in making addition of Rs. 36,35,140/- on the rounds of alleged commission received by the assessee company on the alleged accommodation entries and that too without any basis and evidences. 4. That having regard to the facts and circumstances of the case Ld. CIT(A) has erred in law and n facts in confirming the action of Ld. AO in making addition of Rs. 29,43,644/- on the ground of allegedly earning commission on the alleged providing intermediate accommodation entries and that too without any basis and evidences. 5. That having regard to the facts and circumstances of the case Ld. CIT(A) has erred in law and on facts in confirming the action of Ld. AO in making aggregate addition of Rs. 65,78,784/- and in framing the impugned assessment is bad in law, illegal, unjustified and contrary to facts and law, by recording incorrect facts and finding, without giving adequate opportunity of hearing and the same is not sustainable on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed for escapement of income; no application of mind; no proper satisfaction was recorded before issue of notice u/s. 148; no independent conclusion that there was escapement of income. It was further stated that the case was reopened only on the basis of Investigation Wing information which suffers with serious debility and lacks definiteness, without describing the basic aspects of alleged transaction and in the absence of the same, whole action of the AO gets vitiated. To support his contention he submitted that the issue in dispute is squarely covered in favour of the assessee by the ITAT decision dated 09.1.2015 in the case of G&G Pharma India Limited vs. ITO passed in ITA No. 3149/Del/2013 (AY 2003-04) in which the Judicial Member is the Author. He further stated that the above decision of the ITAT dated 9.1.2015 has been upheld by the Hon'ble Jurisdictional High Court in its Decision dated 08.10.2015 in ITA No. 545/2015 in the case of Pr. CIT-4 vs. G&G Pharma India Ltd. In this behalf, he filed the copy of the order dated 9.1.2015 of the ITAT, Delhi Bench passed in the case of G&G Pharma India Ltd vs. ITO (Supra). In this regard, he filed the copies of the aforesaid decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Keeping in view of the facts and circumstances of the present case and the case law applicable in the case of the assessee, we are of the considered view that the reopening in the case of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed. Our view is supported by the following judgments/decisions:- (a) Pr. CIT vs. G&G Pharma India Ltd. in ITA No. 545/2015 dated 8.10.2015 of the Delhi High Court wherein the Hon'ble Court has adjudicated the issue as under:- "12. In the present case, after setting out four entries, stated to have been received by the Assessee on a single date i.e. 10th February 2003, from four entities which were termed as accommodation entries, which information was given to him by the Directorate of Investigation, the AO stated: "I have also perused various materials and report from Investigation Wing and on that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account by way of above accommodation entries." The above conclusion is unhelpful in understanding whether the AO applied his mind to the materials that he talks about particularly since he did not describe what those m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objected by the assessee. The Assessing Officer rejected the objections. The assessee company filed writ petition and challenged the notice and the order on objections. The Delhi High Court allowed the writ petition and held as under: "(i) Section 147 of the Income-tax Act, 1961, is wide but not plenary. The Assessing Officer must have 'reason to believe' that income chargeable to tax has escaped assessment. This is mandatory and the 'reason to believe' are required to be recorded in writing by the Assessing Officer. (ii) A notice u/s.148 can be quashed if the 'belief' is not bona fide, or one based on vague, irrelevant and nonspecific information. The basis of the belief should be discernible from the material on record, which was available with the Assessing Officer, when he recorded the reasons. There should be a link between the reasons and the evidence/material available with the Assessing Officer. (iii) 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 Rs. 5 lakhs during F.Y. 2002-03 as stated in the annexure. According to the inform ..... X X X X Extracts X X X X X X X X Extracts X X X X
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