9911796707
TMI Blog2025 (4) TMI 996X X X X Extracts X X X X X X X X Extracts X X X X ..... sed u/s 147/143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') by the ITO, Ward-34(5), New Delhi (hereinafter referred to as the Ld. AO). 2. On hearing both the sides, we find that it is ground No.2 which goes to the root of assumption of jurisdiction by way of reopening of the assessment for which the the ld. counsel for the assessee has opened and argued the case submitting that the reopening is based on reasons which establish utter non-application of mind. The same has been contested by the ld. DR and based upon the rival submissions it comes up that at page No.64 of the paper book the copy of a form for recording the reasons for initiating proceedings u/s 148 of the Act and for obtaining the approval of the comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. AO mentions the fact that the assessee was summoned by ITO (Inv.) and asked to provide explanation of credit and debit entries along with supporting documentary evidences. Assessee submitted various details from time to time. Assessee is a proprietor in M/s VNI Exports. He is partner in M/s Manraj Enterprises, M/s. V.N. International and M/s Jewel Craft (later converted into M/s Golden Jewel Craft India Pvt. Ltd. during F.Y 2010-11). In addition, the assessee was also director in M/s Golden Phoenix FL Pvt. Ltd., M/s Golden Jewel Craft India Pvt. Ltd. and M/s Kashvi Metals Pvt. Ltd. Assessee submitted that various debit and credit entries in his savings account are related to unsecured loan and fund transfer among above said firms/c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e. 2011-12. In view of the findings, it can be concluded that creditworthiness of M/s Shiva Chain Pvt. Ltd. is not proved. So all unsecured loan i.e. Rs. 8,99,12,000/- taken by the assessee from M/s Shiva Chain Pvt. Ltd. during F.Y. 2010-11 appears to be income from unexplained sources. 6. Based on aforesaid information from the investigation wing what the ld. AO concluded is as follows; "I have examined the assessee's return of income for assessment year 2011-12 in the light of above noted information, I am satisfied that neither the particulars declared in the return of income vindicate the information stated above nor the income disclosed by the assessee in his return of income is commensurate with the credits/debits shown in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the purpose of assumption of jurisdiction for reopening beyond a period of four years there was lack of application of mind by the ld. AO. The attention of this Bench was drawn by the ld. counsel to the order of the Jaipur Bench of the Tribunal in the case titled ITO vs. Satya Narayan Parwal, ITA No.706-708/JP/2003, order dated 28.12.2004 wherein the Revenue was challenging the order of the ld.CIT(A) alleging that quantification of escaped income was necessary at the stage of recording of reasons and it was held by the coordinate Bench that the recording of the amount of escapement was obligatory on the part of the AO. 8. Then, as we go through the format for recording the reasons and for obtaining approval, we find that the AO specificall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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