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TMI Blog2013 (5) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... Section 147 of the Income - tax Act, 1961 (hereinafter referred to as "the said Act"). 2. Insofar as assessment year 2002-03 is concerned, the original assessment under Section 143(3) of the said Act was completed on 29.11.2004. The notices under Section 148 were issued on 21.09.2006. As regards, assessment year 2003-04, there was no assessment under Section 143(3) of the said Act, however, an intimation under Section 143(1) thereof had been issued. The notice under Section 148 seeking to re-open the assessment was issued on 17.10.2006. 3. The reasons indicated behind the re-opening of the assessments were identical in both the cases. We are setting out below the reasons given in respect of the assessment year 2002-03. They are as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Assessing Officer held the said sums to be bogus entries. 4. Being aggrieved by the said orders passed by the Assessing Officer, the respondent / assessee preferred appeals. Those appeals were allowed by the Commissioner of Income Tax (Appeals) by a common order dated 06.01.2011. Insofar as the assessment year 2002-03 was concerned, the CIT (Appeals) held that the reassessment proceedings were bad inasmuch as it amounted to a mere change of opinion. The findings of the CIT (Appeals) to this effect were as under:- "The submissions made on behalf of the appellant company and reasons recorded by the Ld AO have been carefully perused. On consideration, I find that the issue of share capital and share application money has come up in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs, the CIT (Appeals) held in favour of the assessee on merits also. 6. Being aggrieved by the deletion of the addition made by the CIT (Appeals), the revenue preferred the above mentioned appeals before the Tribunal. As mentioned above, the Tribunal rejected those appeals and that is how the revenue has filed these appeals before us. 7. We may point out at this juncture itself that the Tribunal did not go into the question of merits. It only examined the question of the validity of the proceedings under Section 147 of the said Act. The Tribunal, in essence, held that the purported reasons for reopening the assessments were entirely vague and devoid of any material. As such, on the available material, no reasonable person could have any r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew Delhi have not been given. The AO has vaguely referred to certain communications that he had received from the DIT(Inv.), New Delhi; the AO did not mention the facts mentioned in the said communication except that from the informations gathered by the DIT (Inv.), New Delhi that the assessee was involved in giving and taking accommodation entries only and represented unsecured money of the assessee company is actually unexplained income of the assessee company or that it has been informed by the Director of Income-tax (Inv.), New Delhi vide letter dated 16.06.2006 that the assessee company was involved in giving and taking bogus entries/transactions during the relevant financial year. The AO did not mention the details of transactions tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned in the assessment order and in respect of which ultimate addition has been made by the AO, cannot be made a basis to say that the reasons recorded by the AO were with reference to those amounts mentioned in the assessment order. The reasons recorded by the AO are totally silent with regard to the amount and nature of bogus entries and transactions and the persons with whom the transactions had taken place. In this respect, we may rely upon the decision of Hon'ble jurisdictional Delhi High Court in the case of CIT vs. Atul Jain (2000) 299 ITR 383, in which case the information relied upon by the AO for initiating proceedings u/s 147 of the Act did indicate the source of the capital gain and nobody knew which shares were transacted an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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