9911796707
TMI Blog2023 (9) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income Tax Act, 1961 [in short, "Act"]. 3. The principal grievance of the petitioner is that the impugned notice was issued on almost the last day when the period of six (6) years from the end of the AY in issue, was to expire, without the Assessing Officer (AO) having available with him the requisite material which would have made him believe that there were reasons to believe that the income chargeable to tax had escaped assessment. 4. To adjudicate the issue raised in the case, the following broad facts are required to be noticed: 4.1 The petitioner had filed its Return of Income (ROI) for the aforementioned AY i.e., AY 2011-12 on 30.09.2011. In the ROI, the petitioner had declared its taxable income as "nil", albeit, after claiming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 80IC of the Act, amounting to Rs. 21,34,54,576/-. 4.9 The petitioner was served with the Section 148 notice, as alluded to above, on the last day when the 6 years period was reaching its end i.e., on 31.03.2018. 5. Having been served with the notice, the petitioner communicated its objections to the commencement of the reassessment proceedings via letter dated 06.04.2018 6. Furthermore, the petitioner, in the said communication, also averred that the return originally filed should have been treated as the return filed in response to the notice issued under Section 148 of the Act. 6.1 In addition to it, the petitioner via this very communication, also called upon the AO to furnish reasons for reopening the completed scrutiny asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asons to believe has alluded to the fact that search and survey action in the past has been conducted qua one Mr Surendra Kumar Jain, who has been identified as an entry operator, and that the said person had failed to explain the genuineness of the transactions undertaken with the petitioner, in the inquiry proceedings. Furthermore, the reasons to believe also advert to the fact that follow-up inquiries were made and information was gathered from the ITBA Portal and the ITD Portal. These reasons would not suffice, as there is nothing stated as to the information received obtained during the search and survey action carried out qua Mr Surendra Kumar Jain, and how the formation of the view, by the AO, that income chargeable to tax had escape ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... movement of funds was analysed vis-à-vis eleven(11) companies and it was found that out of these, three (3) companies were used as conduits for circulating the funds amongst eleven (11) bank accounts. 14. Based on the aforesaid assertions, Mr Rai says that the Jain Brothers, which included Mr Surendra Kumar Jain, the person mentioned in the AO's communication and the reasons to believe, was in the business of according accommodation entries in the form of unsecured loans, against which commission was charged by him. 15. We have heard the learned counsels for the parties and perused the records. 16. According to us, the foundation of any reassessment proceeding is the "reasons to believe" that the AO frames before embarking upon th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee for AY 2011-12 also perused. It is found in the assessment order that addition of Rs. 21,34,54,576/- on account of disallowance of claim u/s 80 IC was made only. 5. In view of Ire above facts, I have reason to believe that the income of the assessee related to accommodation entry of Rs. 2,00,00,000/- received from M/s RKG Finvest Pvt. Ltd has escaped assessment within the meaning of section 147 of the Income-tax Act for A. Y. 2011-12. 6. In order to bring the income escaping assessment under the tax net, issue of notice u/s 148 of Income-tax Act, 1961." 17. A careful perusal of the aforesaid extract would show that the reasons to believe are not aligned with what is stated by the respondent/revenue in their counter- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d above, the petitioner furnished to the AO the confirmation received from RKG, the bank statements, the extract of the ledger account as also its balance sheet for the Financial Year (FY) in issue. 21. It is was only after these documents had been examined by the AO that an assessment order dated 28.03.2014 was passed under Section 143(3) of the Act. As indicated hereinabove, while framing the assessment order, the AO, in fact, disallowed a substantial sum which was claimed by the assessee as deduction under Section 80IC of the Act. 22. The amount claimed by the petitioner was Rs. 21,34,54,576/-. 23. Thus, it was not as if the AO did not address his mind to various facets of the ROI. Clearly, the route chosen by the respondent/revenue w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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