TMI Blog2023 (5) TMI 840X X X X Extracts X X X X X X X X Extracts X X X X ..... ent after due verification and examination. Decided in favour of assessee. - I.T.A. No. 1204/DEL/2020 - - - Dated:- 18-5-2023 - Shri Anil Chaturvedi, Accountant Member And Shri Yogesh Kumar U.S., Judicial Member For the Assessee : Shri K. Sampath, Adv And Sh. V. Rajkuamr, Adv For the Department : Shri Kanv Bali, Sr. D. R.; ORDER PER YOGESH KUMAR U.S., JM This appeal is filed by the Assessee against the order dated 19/03/2020 of the ld. Commissioner of Income Tax (Appeals) (hereinafter referred to CIT (Appeals) Delhi-13, for assessment year 2012-13. 2. The Assessee has raised the following substantive ground of appeal:- That on the facts and in the circumstances of the case and in law the Ld.CIT(A) erred in: 1. Confirming following actions of the Assessing Officer _ a. issuing notice u/s 148 of the Income Tax Act, 1961 which is without jurisdiction and barred by limitation; b. initiating proceedings u/s 147/148 without there being any satisfaction and material on record; c. passing order u/s 143(3)/147 of the Act determining taxable income at Rs. 61,65,020/- against returned income in a sum of Rs.13,15,520/- 2. Sustainin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the said firm did not exist at the given address, specially keeping in mind that the said entity had not filed its Income Tax Return as per the Investigation Wing s Report. The AO issued the final show cause notice on 12.12.2019, in response to which the assessee once again objected to the proceedings, which as per AO had already been disposed by passing a speaking order. Accordingly the assessing officer held the said purchase of Rs.48,49,500/- to be accommodation entry by a dummy shell company. Accordingly, passed the assessment order by making addition of Rs.48,49,500/-by treating the same as accommodation entry. 4. As against the assessment order dated 19/12/2019 passed u/s 147/143(3) of the Act, the assessee preferred an appeal before the CIT(A), the CIT(A) vide order dated 19/03/2020 restricted the addition of bogus purchase to Rs.34,02,000/- by partly allowing the Appeal filed by the assessee. 5. Aggrieved by the order of the CIT(A) in sustaining the said addition of Rs. 34,02,000/- the assessee preferred the present appeal on the grounds mentioned above. 6. The Ld. Counsel for the assessee addressing argument on Ground No. 1 and its sub grounds, submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account no. 911020010105859 in the name of M/s. Astro Informatics. The total turnover of the company in span of 10 months is over Rs. 26.26 Crores. During the course of investigation proceedings it is seen that transaction in the account is mostly in round/whole amount indicating that it might not be in regular business transaction. Therefore, it appears that M/s. Astro Informatics is a dummy/shell company/Fly by night concern. After sifting through the Bank account statement and analyzing the trail of money movement from one account to another account several dummy companies. As per list of beneficiaries and the details of accommodation entry received for A.Y. 2012-13, one of the beneficiary is M/s. Arco oprietor Sh. Arun Kumar Aggarwal. As per record, ITR for F.Y. 2011-12 relevant to A.Y. 2012-13 has been filed by the assessee on 27.09.2012. Further as per ITS (Individual Transaction Statement) it is perused that assessee has deposited cash of Rs. 13,50,000/- in HDFC Bank and earned interest income of Rs. 1,99,122/- as well. This is in addition to the income received through accommodation entry of Rs. 48,49,500/-. As per the material available as well as the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has submitted that the said firm does not exist at the given address as on date. The Inspector report dated 10/12/2019 is placed on record. 5. On the basis of information/tangible material received from investigation, perusal of bank statement, non-compliance of the notice u/s 133(6) of the Act and Inspector s report, it was cleared that the said firm i.e. M/s Astro Informatics is a dummy shell company which has provided accommodation entries to the assessee amounting to Rs. 48,49,500/- during the year under consideration and final show cause notice was issued on 12/12/2019. The Assessee has once again objected vide his letter dated 16/12/2019 however the same has already been disposed off by passing speaking order. Therefore, transaction with M/s Astro Informatics was found to be accommodation entries, and accordingly added to his income. Penalty proceedings u/s 271(1)(c) of the I.T. Act, 1961 is being initiated separately for furnishing inaccurate particulars of income. 11. It is not in dispute that the original assessment order was completed u/s 143(3) of the Act on 14/11/2014. Further the proceedings initiated u/s 147/148 by issuing notice on 31/03/2014 which is after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me would require application of the proviso to Section 147 of the said Act, inasmuch as the notices under Section 148 of the said Act in respect of these two years have been issued beyond the period of four years prescribed in the said provision. That being the case, before the Assessing Officer could acquire jurisdiction for reopening the assessments in respect of these two years, it would have to be shown that the assessee did not file a return or that he did not make a full and true disclosure. It is an admitted position that the assessee had filed a return, therefore, the only question which remains to be open is whether the assessee made a full and true disclosure or not. In the present case there is no allegation in the reasons recorded by the Assessing Officer that the assessee had failed to make a full and true disclosure of the relevant facts. In fact, there could be no such allegation because the assessee had clearly indicated the nature and contents of the TIUF and the treatment given by the assessee in its books of accounts. The same had also been examined by the Assessing Officer as aforesaid. Thus, in respect of the assessment years 1997-98 and 1998-99 this additional ..... X X X X Extracts X X X X X X X X Extracts X X X X
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