TMI Blog2015 (11) TMI 1886X X X X Extracts X X X X X X X X Extracts X X X X ..... ) TMI 754 - DELHI HIGH COURT] hold that the reopening is bad in law. Assessee s appeal is allowed. - ITA No. 387/Del/2014 - - - Dated:- 30-11-2015 - SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER Appellant by : Shri Somil Agarwal, Adv. Respondent by : Sh. T.Vasanthan, Sr.D.R. ORDER This is an appeal filed by the Assessee directed against the order of the Ld. Commissioner of Income Tax (Appeals)-XVII dated 18.11.2013 pertaining to the Assessment Year (A.Y.) 2004-05. 2. The assessee has challenged the reopening of the assessment on the ground that the reasons recorded demonstrate that the Assessing Officer (AO) has not applied his mind independently to the material referred to by him while recording reasons for reopen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... older of entry giving account Bank from which entry given Branch of entry giving bank A/c no. Entry giving account 1. Perfect Capital Services Ltd. ABN Amro Bank 200000 941742 10.4.2003 IME International KVB 166 Perfect Capital Services Ltd. 2. Perfect Capital Services Ltd. ABN Amro Bank 150000 270913 31.10.13 Parivartan Capital Financial Services P.Ltd. Corpn. Bank 167 Perfe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 materials were. Once the date on which the so called accommodation entries were provided is known, it would not have been difficult for the AO, if he had in fact undertaken the exercise, to make a reference to the manner in which those very entries were provided in the account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d subsequent to the reopening will not rescue an inherently defective reopening order from invalidity . 4.2. A plain reading of the reasons recorded demonstrate that the A.O. has not applied his mind to the material/information received from the Director (Investigations). Without such independent application of mind, it is not possible for the A.O. to come to a conclusion that he has reason to believe that income assessable to tax has escaped assessment. Thus, respectfully following the propositions of law laid down by the Hon ble Delhi High Court in the case of Pr.CIT vs. G G Pharma India Ltd. (supra) I hold that the reopening is bad in law. 5. The Ld.Sr.D.R. Shri T.Vasanthan relied on the judgement of the Hon ble Supreme Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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