TMI Blog2023 (2) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... ajeev Khushwaha. It has not been alleged in the reasons that M/s Magnum Tradex Pvt. Ltd., with whom the Petitioner made an alleged sale was being run by Rajeev Khushwaha, although, in the reply affidavit, it is stated by the revenue that M/s Magnum Tradex Pvt Ltd, was one of the entities which was foated by Rajeev Khushwaha for the purpose of providing accommodation entries. It is settled law that the issue of reopening of assessment has to be tested only on the basis of the reasons recorded, which reasons can neither be improved upon nor substituted by an affidavit or oral submissions (See First Source Solution Ltd case[ 2021 (9) TMI 248 - BOMBAY HIGH COURT ] Therefore, the action of the assessing Officer for the purpose of reopening ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income, which was processed under Section 143(1) of the Income Tax Act, 1961 ( the Act ) for the assessment year 2016-17. The assessing Officer subsequently issued a notice under Section 148 of the Act dated 30.03.2021 seeking to reopen the assessment for the assessment year 2016-17 on the ground that income chargeable to tax for the said year had escaped assessment. The reasons for reassessment as furnished to the Petitioner were as under : Issues as per reasons recorded for reopening In this case, information has been received from O/o DDIT(Inv.), Unit-7(4), New Delhi, wherein the DDIT has informed that a search was conducted in the case of Mohit Garg and others on 26 November 2016 after information was received from Delhi Police ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Petitioner, which reasons besides being vague and general, had no direct nexus or live link with the formation of the belief that the assessee s income had escaped assessment. It was, therefore, contended that the jurisdictional requirement of Section 147 having not been fulfilled by the assessing Officer, the notice under Section 148 of the Act, was without jurisdiction. 3. Learned Counsel for the revenue, Mr. Suresh Kumar, on the other hand, buttressed the reasoning of the assessing Officer and stated that there was enough material and reasons for the assessing Officer to initiate reassessment proceedings based upon the information, which was clearly suggestive of the fact that income chargeable to tax had escaped assessment. With ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ming to the notice of the Income-tax Officer and the formation of his belief that there has been escapement of the income of the assessee from assessment in the particular year because of his failure to disclose fully and truly all material facts. It is no doubt true that the court cannot go into the sufficiency or adequacy of the material and substitute its own opinion for that of the Income-tax Officer on the point as to whether action should be initiated for reopening assessment. At the same time we have to bear in mind that it is not any and every material, howsoever vague and indefinite or distant, remote and farfetched, which would warrant the formation of the belief relating to escapement of the income of the assesee from assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e demonetized currency from the premises of Rajeev Khshwaha an alleged Entry Operator. Coming to the the second part of the reason, it is alleged that on verification of the VAT returns and Annexure-2A of M/s Magnum Tradex Pvt. Ltd. for the period 1 January 2016 to 31 March 2016, it was found that the Petitioner, i.e. M/s BU Bhandari Auto Lines Pvt. Ltd. had sold goods amounting to Rs.2,08,76,068/- to M/s Magnum Tradex Pvt. Ltd, which was allegedly a shell entity. 8. In the reasoning recorded, it is not clear as to how M/s Magnum Tradex Pvt. Ltd. is sought to be connected with Rajeev Khushwaha. It has not been alleged in the reasons that M/s Magnum Tradex Pvt. Ltd., with whom the Petitioner made an alleged sale was being run by Rajeev Kh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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