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TMI Blog2015 (2) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... cceptable in the eyes of law. The AO had mechanically issued notices u/s. 148 of the Act, on the basis of information allegedly received by him from the Directorate of Investigation, Jhandewalan, New Delhi. Thus the reopening in the case of the assessee for the asstt. year in dispute is bad in law and deserves to be quashed. - Decided in favour of assessee. - I.T.A. No. 3149/DEL/2013 - - - Dated:- 9-1-2015 - Shri G. D. Agrawal And Shri H. S. Sidhu,JJ. For the Petitioner : Sh. Kapil Goel, Adv. For the Respondent : Sh. Vikram Sahai, Sr. DR ORDER Per H. S. Sidhu : JM Assessee has filed this Appeal against the impugned order dated 30.8.2011 passed by the Ld. CIT(A)-XV, New Delhi relevant to assessment year 2003-04. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application of mind; total lack of clarity on nature of transaction in reasons recorded; requisition sanction from competent authority u/s. 151 was conspicuously missing on face of reasons supplied to the assessee and the reasons recorded in the case of the assessee. Ld. Counsel of the assessee has filed a small Paper Book which establish that the AO has not applied his mind before issuing the notice for reopening the case of the assessee and not making any independent enquiry. Therefore, the reopening u/s. 148 of the Act is invalid, in view of the following decisions rendered by the Hon ble Jurisdictional High Court and the ITAT, Delhi Benches. i) CIT vs. Kamdhenu Steels Alloys Ltd. Ors. (2012) 248 CTR (Del) 33, (DHC) ii) CIT vs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lacs which has introduced its own unaccounted money in its bank account by way of above accommodation entries. Therefore, the assessee is a beneficiary of taking the aforesaid accommodation entries which has not been accounted for in the books of accounts of the assessee and has escaped assessment and hence the income of the assessee is escaped income and is a failure on the part of the assessee company to disclose truly and fully all the material facts in the assessment in dispute. He further submitted that the AO has rightly reopened the case of the assessee on the basis of the documentary evidence available with the AO. He has also filed the documentary evidence in the shape of Paper Book containing pages 1 to 62 in which he has attache ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that assesse is a beneficiary of taking the aforesaid accommodation entries. L have also perused various materials and report from Investigation Wing and on that basis it is evident that the assesse company has introduced its own unaccounted money in its bank account by way of above accommodation entries. Therefore, I have reasons to believe that the income of the assessee company amounting to ₹ 20,00,0001- has escaped assessment. The escapement of income has been clearly on account of failure on the part of the assesse company to truly and fully disclosed all material facts necessary for assessment thus, it is fit case for initiation of proceedings u/s 147 of the income tax act, 1961. 8. We have perused the aforesaid reasons re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee company filed writ petition and challenged the notice and the order on objections. The Delhi High Court allowed the writ petition and held as under: (i) Section 147 of the Income-tax Act, 1961, is wide but not plenary. The Assessing Officer must have reason to believe that income chargeable to tax has escaped assessment. This is mandatory and the reason to believe are required to be recorded in writing by the Assessing Officer. (ii) A notice u/s.148 can be quashed if the belief is not bona fide, or one based on vague, irrelevant and nonspecific information. The basis of the belief should be discernible from the material on record, which was available with the Assessing Officer, when he recorded the reasons. There sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had taken a bogus entry of capital gains by paying cash along with some premium for taking a cheque for that amount. The information did not indicate the source of the capital gains which in this case were shares. There was no information which shares had been transferred and with whom the transaction had taken place. The AO did not verify the correctness of information received by him but merely accepted the truth of the vague information in a mechanical manner. The AO had not even recorded his satisfaction about the correctness or otherwise of the information for issuing a notice u/s 148. What had been recorded by the AO as his reasons to believe was nothing more than a report given by him to the Commissioner. The submission of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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