9911796707
TMI Blog2025 (5) TMI 1594X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income Tax Appellate Tribunal "A" Bench, Kolkata (Tribunal) in ITA No. 574/Kol/2022, for the assessment year 2010-11. 5. The revenue has raised the following substantial questions of law for consideration : "i) Whether on the facts and in the circumstances of the case, the Learned Tribunal erred in holding that objective satisfaction has not been recorded by the assessing officer as to how the income has escaped assessment while ignoring the ratio laid by the Hon'ble Supreme Court in Raymond Woollen Mills Vs ITO 236 ITA 34(SC)? ii) Whether on the facts and in the circumstances of the case, the Learned Tribunal was justified in holding that the assessing officer reopened the case on very vague reasons while ignoring the specific information available and recorded in the case? iii) Whether on the facts and in the circumstances of the case, the Learned Tribunal was justified in quashing the assessment order when sufficiency for forming the belief is not open for question but existence of belief can be challenged as held by the Hon'ble Supreme Court in the case of Phool Chand Bajranglal Vs ITO 203 ITR 456? iv) That the appellant craves to add, modify or alter any grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 1 Crore as unexplained credit. 9. From the assessment order it is seen that though sufficient opportunity was given to the assessee to explain the funds transferred in the bank account, no explanation was forthcoming. Accordingly, the assessment was completed. 10. Therefore, it cannot be stated that the Assessing Officer did not apply his mind nor reasons given for reopening could be stated to be bogus. The reasons for reopening have been noted by the Tribunal which state that information is in possession of the department in respect of M/s. Event Developers Pvt. Ltd., the assessee from which it is revealed that the assessee has received Rs.1 Crore on 28th August, 2009 from the current account of M/s. Rupak Developers Pvt. Ltd. 11. Further, the reasons stated that though survey operation carried out on 9.6.2009 by Mumbai Directorate (Investigation) in the case of M/s. Rupak Developers Pvt. Ltd., it was found that no business activity was carried out by the said company and was being used for providing accommodation entries to beneficiaries in the form of bogus LTCG/STCG on sale of penny stocks. 12. Therefore, the reasons have been clearly stated and the assessee having f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her held that the expression cannot be read to mean that the assessing officer should have finally ascertained the fact by legal evidence or conclusion and that the function of the assessing officer is to administer the statute with solicitude for the public exchequer with an inbuilt idea of fairness to taxpayers. Further, a reference was made to the decision in the case of Central Provinces Manganese Ore Co. Ltd. Vs. ITO reported in (1991) 4 SCC 166 and it was held that at the initiation stage, what is required is "reason to believe", but not the established fact of escapement of income. Further, at the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could have formed a requisite belief; whether the materials would conclusively prove the escapement is not the concern at that stage since the formation of belief by the assessing officer is within the realm of subjective satisfaction. It was further held so long as the ingredients of Section 147 are fulfilled, the assessing officer is free to initiate proceeding under Section 147 and failure to take steps under Section 143 (3) will not render the assessing officer pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls of the company are very weak and it clearly indicates that abnormal price rise in the shares of the company is not natural or normal but artificially manipulated. Further, noting the financial strength of the said company the assessing officer has noted that the price of the shares rose astronomically during the period May 2010 to March, 2011 from Rs.16/- to Rs. 271/-. With all these details, show cause notice was issued to the assessee on 03.09.2021 for which the assessee submitted their reply on 10.09.2021 and the assessing officer took into consideration the stand taken by the assessee in their reply and has recorded reasons to hold that the assessee has failed to discharge the onus and, therefore, the only escapable conclusion is that numerous individual assessees have taken entry to LTCG by paying its unaccounted money. Furthermore, that the transaction in shares of M/s. Tuni Textiles Mills Ltd. by the assessee was a prearranged transaction in the form of accommodation entry managed through collusive transactions by group of entry operators and shell entities. Thereafter the assessing officer has taken note of the various decisions, namely, CIT Vs. Durga Prasad More repo ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
