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TMI Blog2021 (2) TMI 1291X X X X Extracts X X X X X X X X Extracts X X X X ..... sked the details regarding unsecured loan taken by the assessee during the year under consideration. The assessee furnished details as called for. The Assessing Officer after perusing the details so furnished by the assessee, passed an order dated 08.10.2014 under Section 143(3) of the Act by making addition and final determined the income at Rs.3,62,200/-. 3. The Assessing Officer reopened the assessment under Section 147 of the Act by issuing impugned notice dated 28.03.2019 under Section 148 of the Act. Pursuant to the notice, the assessee filed return of income on 16.04.2019 and vide letter dated 17.04.2019, requested the revenue to supply copy of reasons for reopening. On 16.05.2019, the respondent supplied the copy of reasons, which reads thus:- Reasons recorded : "2. The assessee company filed its return of income for the A.Y. 2012-13 on 24.09.2012 declaring total income at Rs.3,62,200/Assessment in the case of the assessee was completed w/s 143(3) on 31.03.2015 by accepting Returned Income 2.1 As per available information received in this office from O/o the DGIT (Investigation), Mumbai through proper channel, a search and seizure action was carried out by the Invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale bills etc. He further named the companies/firms on his own of or through other brokers through which he is providing accommodation entries to its clients in lieu of some commission. In this regard he categorically admitted that he is in the business of giving accommodation entries which are routed through the companies under his control. All the companies either owned by him or directly/indirectly under his control are paper companies with no real business transactions. In most of the cases various brokers who operate in the field of providing accommodation entries approach him when they want a certain type of accommodation entry like bogus unsecured loan, bogus LTCG etc. 2.3 From the above detailed investigation based on documentary evidences and admission of the entry provider and associated persons, it is clear that Sh. Pravin Kumar Jain was indulged in providing of accommodation entries through various concerns as identified by the investigation wing to the various beneficiaries according to their need of share application/share capital money/loan/purchase and sale bills etc. As per details available, it is found that the assessee has taken accommodation entry of unsecu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the above facts that the assessee had not truly and fully disclosed material facts necessary for its assessment for the year under consideration thereby necessitating reopening u/s 147 of the IT Act. In this case more than four years have lapsed from the end of assessment year under consideration, Hence necessary sanction to issue notice u/s 148 has been obtained separately from Principal Commissioner of Income-tax as per the provisions of Section 151 of the Act." 4. The assessee raised objections vide its communication dated 01.06.2019 and same came to be rejected by the revenue vide order dated 23.04.2019. 5. Being aggrieved by the order disposal of the objections, against the notice for reopening of the assessment, the writ applicant has come up before this Court by filing the present writ applicant. 6. We have heard learned Senior Counsel Mr. Tushar Hemani, assisted by Ms. Vaibhavi Parikh, the learned counsel appearing for the writ applicant and Mrs. Kalpana Raval, the learned Standing Counsel assisted by Mr. Nikunt Raval, the learned advocate appearing for the revenue. 7. Assailing the notice issued under Section 148 of the Act, Mr. Tushar Hemani, the learned Senio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. Hence, the action on the part of the revenue to reopen the assessment is nothing but it is a change of opinion on the part of the Assessing Officer, which cannot be permitted in eye of law. (e)Referring to reasons recorded, it was submitted that the respondent has merely relied upon the information received from the investigating wing, which seems to be a vague as there is no reference of the assessee that Mr. Jain has provided the accommodation entry to the writ applicant in the form of unsecured loan. Under such circumstances, it was submitted that reopening cannot be permitted for carrying out roving and/or fishing inquiry or investigation without there being a specific finding as to escapement of income. (f) Lastly, it was submitted that the notice under Section 148 can be issued if the Assessing Officer has reason to believe that income chargeable to tax has escaped assessment, for which, the Assessing Officer, at all applied his mind independently so as to reach a conclusion that income has escaped assessment. Thus, in the present case, the Assessing Officer has initiated the proceedings of reopening merely based on borrowed satisfaction i.e. the information received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides that whether an assessment under sub-section (3) of Section 143 has been made for the relevant assessment year, no action shall be taken under Section 147 after the expiry of 4 years from the end of relevant assessment year. Unless any income chargeable to tax has escaped assessment, failure on the part of the assessee to make a return under Section 139 or to disclose fully and truly all material facts, necessary for his assessment for that assessment year. 13. The record indicates that the assessee had disclosed the transactions of loan in their books of accounts and return of income. It is also admitted facts that during the scrutiny assessment proceedings, the assessee had furnished all the details as called for including bank statement of parties from whom loan was taken. It is the case of the revenue that the information received from the concerned, M/s. Ramdev Shares and Securities Pvt. Ltd, is paper company, managed by Mr. Pravin Jain and he was found to be an accommodation entry provider and the alleged transaction is bogus transaction and therefore, the amount of unsecured loan and interest thereon is liable to tax and has escaped assessment. 14. After careful e ..... 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