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TMI Blog2023 (5) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... ed both on facts and in law in making reassessment under Section 147 of the Act as the reasons recorded for reopening the assessment does not meet the requirements of Section 147 of the Act. 4. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in rejecting the contention of the assessee that the reassessment proceedings initiated under section 148 are bad in law as there is no live nexus between the reasons recorded and the belief formed by the AO. 5. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law, in confirming the order passed by the learned AO under section 148 of the Income tax Act is barred by limitation since the same is passed beyond the specified time limit. 6. On the facts and circumstances of the case, the notice issued under section 148 is illegal having been issued on the basis of reasons containing no whisper as to how the assessee has failed to disclose fully and truly all material facts, the notice having been issued after four years from the end of the relevant assessment year. 7. (1) On the facts and circumstances of the case, the reassessment proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment available at page No. 16 and 17 of the assessee's paper book wherein, the AO solely relied on the findings of the Investigation Wing and no independent exercise for having reason to believe has been done by the AO. The ld counsel submitted that as per order of ITAT Delhi Benches in the case of M/s. Savita Holdings Pvt. Ltd Vs. ITO reported in 2021 (3) TMI 833, the Tribunal while quashing the reassessment proceedings held that when it is clear that the AO recorded incorrect and wrong facts in the reasons recorded for reopening assessment and did not apply his mind to the information received from the Investigation Wing. Thus, the reopening of the assessment is invalid and bad in law and is liable to be quashed. 4. Replying to the above the ld Sr. DR strongly supported the orders of the authorities below and submitted that the AO has considered the information received from the Investigation Wing and thereafter have reason to believe that the income of Rs. 25 lakhs and commission therein Rs. 43,750/- has escaped assessment. The ld Sr DR submitted that though the legal grounds of assessee are not tenable and the same may kindly be dismissed. 5. On careful consideration of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accommodation entries are received. Further, the report provides the amount of entry taken name of the accommodation entry provider, its bank details etc. As per the details received revealed that the entries have been provided as accommodation entries to the assessee company by M/s Finage Lease & Finance India Ltd., M/s Shalini Holdings Ltd., M/s Virgin Capital Services Pvt. Ltd., M/s Humtum Marketing Pvt. Ltd. & M/s Singhal Securities Pvt. Ltd., bogus and dummy companies of Sh. S.K.Jain group the entry operators. The detailed chart containing cheque no, date amount of entry bank name and mediator through whom entries given are as under: - Cheque Book Dale From Company name To Company/Person name Name of the issuing bank Cheque /RTGS/ PONo Cheque date Amount (*> Name of the middleman/ Mediator Annxu re No Page No t 13/03/08 Finage Lease & Finance India Ltd M/s Amril Bakewell Products Pvt. Ltd. AXIS CH NO. 128112 13/03/08 5,00.000 SATISH GARG A-95 18 13/03/08 Shalini Holdings Ltd. M/s Amrit Bakewell Products Pvt. Ltd. AXIS CH NO 229615 3/03/08 5.00,000 SATISH GARG A-95 18 13/03/08 M/s Virgin Capital Services Pvt. Ltd M/s Amrit Bakewell Products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to whether the impugned amount is loan/ credit/ share application money or any other thing the AO is alleging the entries as accommodation entries and as per him the same represents undisclosed income/ income from other sources of assessee company. From the last para it is clear that the AO concluded that having perused and considered the information received from the Investigation Wing and on the basis of this new information he has reason to believe that the income of Rs. 25,43,750/- has escaped assessment as defined u/s 147 of the Act. 7. On logical analysis the reasons recorded by the AO I clearly noted that the AO has merely reproduced the information and modus operandi of accommodation entries provider thereafter he noted a detailed chart containing five entries and below the chart he noted that it is a fresh information regarding the fact that the assessee is a beneficiary of bogus accommodation entries which represents undisclosed income/ income from other sources even upto this stage the AO was not characterize the entry found by the Investigation Wing. Even in the last para he clearly stated that on the basis of information received from Investigation Wing he has reason ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above, I have no hesitation to hold that from the reasons recorded I am unable to see any exercise done by the AO to ensure what is the character of alleged accommodation entries and no exercise has been undertaken by him regarding impugned five entries tabulated in the reasons recorded. In the last operative part he again reiterated that on the basis of information received from Investigation Wing he has reason to believe that income as escaped assessment. Therefore, it is clear that AO has acted only on the basis of information received from Investigation Wing without any exercise it has own level and only on the basis of borrowed satisfaction, he initiated the reopening of assessment u/s 147 and issued notice u/s 148 of the Act, which are invalid being bad in law and liable to be quashed. 10. In view of the foregoing discussion, I set aside the orders of the authorities below and quash the reopening of the assessment. 11. Since I have granted relief to the assessee on legal ground therefore, other grounds of the assessee on merit are not being adjudicated and they are left open. 12. In the result, appeal of the assessee is partly allowed. Order pronounced in the open court o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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