TMI Blog2022 (5) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer has issued notice which had remained uncompliance with. The assessee s plea of the assessee having no onus to prove the creditworthiness of the party is not sustainable on the touchstone of Hon'ble Bombay High Court Goa Bench decision in CIT Vs. Sadiq Sheikh [ 2020 (10) TMI 1028 - BOMBAY HIGH COURT] - Decided against assessee. - I.T.A. No. 529/Mum/2020 - - - Dated:- 20-4-2022 - Shri Shamim Yahya ( AM ) Assessee by : None Department by : Shri Pravin Salunkhe ORDER This appeal by the assessee is directed against the order of learned CIT(A) dated 3.12.2019 pertains to A.Y. 2007-08. 2. Grounds of appeal read as under :- As regards validity of reopening of assessment proceedings u/s 147 of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.13,00,0000 in relation to Share application money as unexplained Cash Credit u/s 68 be deleted. 3. Brief facts are that the assessee is a Private Limited Company and engaged in the business of financing activities. The assessee filed return of income for AY 2007-08 on 27.10.2007 declaring total income at Rs.5,41,580/-. Subsequently, on the basis of the information received from the Investigation Wing that the assessee is allegedly one of the beneficiaries of having accommodation entries in the form of Share Application Money amounting to Rs.13,00,000/- from a bogus concern operated by Shri Praveen Kumar Jain and group concerns namely M/s Real Gold Trading Company Pvt Ltd (New name M/s Olive Overseas Pvt Ltd), the case was re-ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the assessee as per the following. 1. As the onus is on you to substantiate your claim of the transaction, you are required to produce the Authorised person from M/s Realgold Trading Company Pvt Ltd for confirmation of the transaction made' with your company. Please note that, in absence of the identity and confirmation from the said entity the genuineness of transaction cannot be substantiated. 2. Further, you are required to submit the present position of share holding of the said entity with your company. If the said entity is not holding the allotted shares of your company, then when the said entity has surrendered it holding. Please give details of this transaction 3. Under these circumstances and following t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the year is company u/s. 88 of the IT Act. 4. Against the above order assessee appealed before learned CIT(A) challenging the reopening as well as merits of the case. Learned CIT(A) upheld the reopening by observing as under :- As could be seen from record, the A.O. has recorded reasons for reopening and has satisfied himself that there is a reason to believe that income has escaped assessment Sec 147 says that the A.O has to have reason to believe that any income chargeable to tax has escaped assessment Reason to believe can be on the basis of information which comes to his possession or knowledge This information is more than enough for any reasonable person to form a reason to believe that income has escaped assessment T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r reassess income chargeable to tax if he has reason to believe that income for any assessment year has escaped assessment. So long as the ingredients of Sec 147 are fulfilled, A.O. is free to initiate proceedings u/s 147 and failure to take steps u/s 143(3) will not render the A.O. powerless to initiate reassessment proceedings even when intimation u/s had been issued. In this case, the A.O. has ample reason to believe that income has escaped assessment and had rightly issued the notice u/s 148 to the appellant after recording reasons for reopening. The A.O. is well acted within jurisdiction and acted in accordance with the provisions of the I.T. Act. This ground of appeal is accordingly dismissed. 5. On merit also he confirme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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