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TMI Blog2013 (6) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... t the assessee was totally wrong and therefore, the reassessment proceedings were not sustainable and CIT(A) was fully justified in cancelling the reassessment framed in the hands of the assessee. In favour of assessee. - ITA No. 301/JU/2010 - - - Dated:- 6-6-2013 - Shri Hari Om Maratha And Shri N. K. Saini,JJ. For the Petitioner : Shri Deepak Sehgal For the Respondent : Shri Amit Kothari ORDER Per N. K. Saini, A. M. This is an appeal by the Department against the order dated 22-02-2010 of the ld. CIT(A), Udaipur . Following ground has been raised in this appeal. "On the facts and in the present circumstances of the case the Id. CIT(A, Jodhpur has erred in cancelling the order made by the Assessing Officer u/s 147 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso filed the objection against initiation of re-assessment proceedings u/s 148 of the Act. The Assessing Officer observed that after recording the reason to believe on his part and obtaining prior approval of Addl. CIT, Range-2, Udaipur, proceedings u/s 147 were rightly initiated and notice u/s 148 of the Act was issued as per provisions of the Act. The Assessing Officer ultimately completed the assessment at an income of Rs. 24,83,450/- vide assessment order dated 21-12-2009. 2.2 Being aggrieved, the assessee carried the matter to the ld. CIT(A) and the submissions as summarized by the ld. CIT(A) in para 2.2 of the impugned are reproduced verbatim as under:- ''2.2 the appellant is a firm running petrol pump of HPCL S.K.O, Oil lubric ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ong with alleged payment of commission @ 1% Rs.18000/-. The recording of the said cash payment and cash repayment in the books of above company were further linked with statement of Shri Gajendra Porwal allegedly recorded on 29.8.2005 who admitted cash payment and receipt of Rs.1800000/- in the form of accommodation entries. It was also mentioned in the narration of the entry like: being Lavti Company (current account) advance given on your behalf and entry passed. Although title of account was in the name of Shri Bhupender Shrimali escapement has been suspected on the basis of narration written with the transaction. It is very pertinent to add here that on similar facts and material, reassessment proceeding have been initiated in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recording the reason the Ld. A.O. was not sure as to whom the alleged escape income belongs to. And unless he is sure, no notice u/s 148 can be issued. This objection was raised in reliance with the finding of Hon'ble Supreme Court in the case of G.K.N.Driveshaft cited at 259 ITR 019.The objection was however rejected by the Ld. A.O in the shelter of finding of the Apex Court in the case of Raymond Woolen Mills 236 ITR 34. Whereas finding in the later one relates to the undervaluation of inventories on account of element of charging of fiscal duties and direct cost is totally different form the issue involved under consideration. Copy of orders enclosed, (pg no ). And therefore order passed by the Ld. A.O. without dealing with the objection ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ali. These have been concluded with substantive addition in the hands of appellant and protective addition in the hands of Shri Bhupender Shrimali is nothing but proof of recording of the reason on the basis of reason to suspect and not reason to believe. The appellant places reliance on the following case laws in support of his contention :- (2007) 292 ITR (Raj.)397 CIT vs Mahesh Gum Oil Industries (2005) 273 ITR (Cal) 16 Peerless General Fianace vs DCIT (2004)271 ITR (All) 113- Indraprasta Chemicals v/s CIT (2004) 90 ITD 90 DCIT vs Narendra Mohan Bagroy (2005) 97 ITD )JD) 581 Dr Devendra Gupta vs ITO Under the circumstances, the Ld. A.O. has grossly erred on law and in appreciation of the facts and has wrongfully initiated t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of account of Shri Bhupender Shrimali in the books of M/s Abhvya Investments Pvt. Ltd., Mumbai. The Assessing Officer on the basis of the said copy of account suspected that the income of the assessee escaped assessment. However, nothing concrete was brought on record to substantiate that the assessee received any entry or made payment for accommodation entry.Therefore, the basis on which the re-assessment proceedings were initiated against the assessee was totally wrong and therefore, the reassessment proceedings in the case of the assessee were not sustainable and the ld. CIT(A) was fully justified in cancelling the reassessment framed in the hands of the assessee. Therefore, we do not find any infirmity in the order of the ld. CIT(A). A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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