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TMI Blog2014 (8) TMI 761X X X X Extracts X X X X X X X X Extracts X X X X ..... handra Mohan Garg,JJ. For the Appellant : Mrs. Ashima Neb, Sr.DR. For the Respondents : Shri V. P. Gupta and Shri Anunav Kumar, Advocates. ORDER Per G. D. Agrawal, VP : These appeals by the Revenue are directed against the order of learned CIT(A)-IV, New Delhi dated 29th July, 2010 and 7th September, 2010 for the AY 2001-02. 2. At the time of hearing before us, it is admitted by both the parties that the facts in both the cases are identical and therefore, if ITA No.4281/Del/2010 is considered and adjudicated upon, the same would be applicable to ITA No.4949/Del/2010. In view of the above, we shall first deal with ITA No.4281/Del/2010. 3. In this appeal by the Revenue, following grounds are raised:- 1. On the facts and circumstances of the case and in law, the order of the ld.CIT(A) is wrong, perverse, illegal and against the provisions of law which is liable to be set aside. 2. The ld.CIT(A) has erred on facts and in law in holding that re-opening of the case u/s 147/148 was not valid in law, especially in view of decision of the jurisdictional High Court in Midland Fruit and Vegetables Products (India) Ltd vs. CIT (1994) 208 ITR 266. 3. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) should be sustained. In support of his contention, he relied upon the following decisions of Hon'ble Jurisdictional High Court:- (i) CIT Vs. Suren International P.Ltd. [2013] 357 ITR 24 (Delhi). (ii) Signature Hotels P.Ltd. Vs. ITO and Another [2011] 338 ITR 51 (Delhi). 6. We have carefully considered the submissions of both the sides and perused relevant material placed before us. The reasons recorded by the Assessing Officer for issuing notice under Section 148 read as under:- Reasons for issuing notice u/s 148 in the case of M/s Comero Leasing Financial Pvt Ltd for AY 2001-02 A Report on enquiries made by the Directorate of Income Tax (Investigation) New Delhi into accommodation entries given by entry operators has been received. This report was received in the Office of Commissioner of Income Tax, Delhi-I, New Delhi and was subsequently forwarded vide F.No.CIT-I/2005-06/2132 dated 13.03.2006. These enquiries were initiated to probe into some bank account which were used to issue cheques to entry seekers or beneficiaries against cash paid by them to the entry operators. Such a camouflaged transaction came to light during the course of survey in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peons, drivers etc. whose earnings are not sufficient for a living. They earned normally ₹ 3 to 5 thousand per month in their normal work and by working for the entry operators earned extra income of ₹ 2 to 4 thousand per month. Their signatures were taken on blank gift deeds, cheque books, share application money etc. In fact these persons signed all types of papers they were asked to sign. They were made directors of companies, partners of firms and proprietor of different concerns solely for operation of these accounts. Actually, many of them were not even aware of the tax implications etc. their only concern was with the few thousand rupees given to them by the entry operators. 3. Summing up, the report as a result of these extensive enquiries carried out by the D.I.T. (Inv.), New Delhi has assailed genuineness of transactions, whether shown by beneficiaries as inflow of share capital or receipt of gifts or consideration for sale-purchase. It has also dealt a body blow to the creditworthiness of the persons/persons controlling the concerns who have given these credit entries/share capital/gifts/sale consideration as they have been seen to be the man of no means. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g reassessment proceedings are recorded and we are unable to countenance that any belief based on such statements can ever be arrived at. The reasons have been recorded without any application of mind and thus no belief that income has escaped assessment can be stated to have been formed based on such reasons as recorded. 8. The facts in the assessee s case are identical. In this case also, the Assessing Officer, except preparing the table of alleged accommodation entries from the details claimed to have been received from the Investigation Wing, has not at all applied his mind. From a bare perusal of the table of the alleged accommodation entries, it is evident that the same entries have been repeated five times. This is the clear indication of non-application of mind by the Assessing Officer. Therefore, the above decision of Hon'ble Jurisdictional High Court would be squarely applicable to the facts of the assessee s case. 9. Learned DR has also relied upon the two decisions of Hon'ble Jurisdictional High Court. The first one was in the case of Nova Promoters and Finlease (P) Ltd. (supra). However, from a perusal of the order of Hon'ble Jurisdictional High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts of the case, we find this contention of the learned counsel to be correct and moreover, on identical facts, Hon'ble Jurisdictional High Court in the case of Suren International P.Ltd. (supra) held that the reasons recorded without any application of mind cannot be said to be a proper belief with regard to escapement of income. We, therefore, respectfully following the decision of Hon'ble Jurisdictional High Court in the case of Suren International P.Ltd. (supra), uphold the order of learned CIT(A) and dismiss the appeal filed by the Revenue. 11. At the time of hearing before us, both the parties have fairly admitted that the issue raised in the case of Camboj Brothers Pvt.Ltd. vide ITA No.4949/Del/2010 and the facts in the said case are identical to the facts in the case of Comero Leasing Financial Pvt.Ltd. Therefore, for the detailed discussion from paragraph No.6 to 9 above, we uphold the order of learned CIT(A) in the case of Camboj Brothers Pvt.Ltd. also and dismiss both the appeals of the Revenue. 12. In the result, both the appeals of the Revenue are dismissed. Decision pronounced in the open Court on 14th August, 2014. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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