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TMI Blog2015 (1) TMI 827X X X X Extracts X X X X X X X X Extracts X X X X ..... facts necessary for assessment. There is no ambiguity in the information which would require investigation. The information of accommodation entries has been given by a participant and this is reason enough to believe that income chargeable to tax has escaped assessment. At this stage, the Assessing Officer is not required to conclusively prove that the reasons in support of the impugned notice establish that the petitioner has taken accommodation entries. This is a matter which would be subject of further investigation during the reassessment proceeding. At that stage it would be open to the petitioner to raise all permissible defences and also to insist on cross examination of the persons who have made a statement implicating the petitioner in having participated in taking accommodation entires. Thus we are not inclined to exercise our extraordinary jurisdiction under Article 226 of the Constitution of India and injunct the Revenue from proceeding further with the impugned notice for reassessment. However it would be open to the petitioner during the reassessment proceedings to challenge the reopening notice on the ground that the statement made by the Pravin Kumar Jain which fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... usiness. 2. Books of accounts of all shell companies are under the control of Shri Praveen Kumar Jain. 3. There is no place from where any genuine business activity is carried out. 3. In view of the above facts and the material available on record, it is clear that the accommodation entry of share capital (share Application/investments) cumulatively amounting to ₹ 120,00,000/- introduced during the financial year 2006-07 relevant to A.Y. 200708 in the books of accounts of M/s Om Vinyls Pvt Ltd is nongenuine and a bogus accommodation entry." 3. The petitioner by it's letter dated 14th October 2014 filed it's objections to the reasons in support of the impugned notice. In its objections, the petitioner inter alia pointed out that on the basis of a statement given by the third party it cannot be inferred that the share application money received by the petitioner was in the form of accommodation entry. Besides, the petitioner pointed out two of the seven names indicated in the reasons from whom accommodation entries were allegedly taken by the petitioner do not even appear in the books of the petitioner. This according to the petitioner would itself make the inf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that if the reasons are read as a whole, it indicates a failure on the part of the petitioner to disclose truly and fully all material facts necessary for assessment. It is not necessary that the words failure to disclose true and material facts must necessarily be incorporated in the reasons in support of the impugned notice; and (c) The information received after the search carried out on Pravin Kumar Jain Group is the basis of a prima facie view of the Assessing Officer that income chargeable to tax has escaped assessment and the issuing of impugned notice cannot be faulted; In the above facts, it is submitted that no interference is called for at this stage with regard to the impugned notice. 6. Admittedly, the impugned notice has been issued beyond the period of four years from the end of relevant Assessment Year. The primary condition to be satisfied for issue of a notice beyond the period of four years is the failure on the part of the assessee to truly and fully disclose all material facts necessary for assessment as provided in the first proviso to Section 147 of the Act. In this case, the petitioner has certainly made a disclosure of amounts received as share capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdiction. In this case, on reading of the reason in support of the impugned notice as a whole, we find that it does bring out the failure on the part of petitioner to disclose fully and truly all material facts necessary for assessment. 8. It was next contended that the impugned notice has been issued mechanically without any investigation on the part of the Assessing Officer on the information received before reaching a prima facie view that there is reason to believe that income chargeable to tax has escaped assessment. The information received by the Assessing Officer on which basis the impugned notice is issued is specific. There is no ambiguity in the information which would require investigation. The information of accommodation entries has been given by a participant and this is reason enough to believe that income chargeable to tax has escaped assessment. At this stage, the Assessing Officer is not required to conclusively prove that the reasons in support of the impugned notice establish that the petitioner has taken accommodation entries. This is a matter which would be subject of further investigation during the reassessment proceeding. At that stage it would be open ..... X X X X Extracts X X X X X X X X Extracts X X X X
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