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TMI Blog2015 (2) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... n and void ab initio. 3. We have heard the arguments of both the sides and perused relevant material placed before us. At page 1 of the assessment order, the Assessing Officer has given the reasons recorded for reopening of assessment which are reproduced below for ready reference:- "There is an information with the department that the above named assessee is the beneficiary of an accommodation entry amounting to Rs. 6,00,000/- which was actually his own unaccounted money introduced to his own capital without paying any tax, by approaching the entry operator who after receiving the cash equal to entry amount and commission which is normally 10% of the entry, from the assessee, got prepared bank instrument on 19.04.2002 of Rs. 6,00,000/- o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut any escapement of income. The Assessing Officer has even not mentioned the person from whom the alleged accommodation entry, if any, was received and the nature of the accommodation entry. He submitted that during the accounting year relevant to assessment year under consideration, the assessee has received the gift of `2 lakhs each from six persons. But, in the reasons recorded, there is no mention of any gift and no mention of `2 lakhs. On the other hand, the only mention in the reasons recorded is the so-called accommodation entry of `6 lakhs. He, therefore, submitted that the Assessing Officer had not applied his mind at all before issuing notice under Section 148. Therefore, on these facts, the decision of Hon'ble Jurisdictional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that of the Assessing Officer may be restored. 6. We have carefully considered the submissions of both the sides and perused relevant material placed before us. From a perusal of the reasons recorded, it is evident that the Assessing Officer has mentioned about some information by which the assessee is the beneficiary of an accommodation entry of `6 lakhs because some bank instrument was got prepared on 19.04.2002 of `6 lakhs in favour of the assessee presentable at Bank of Baroda, Faridabad. Now, in the reasons recorded, there is no mention about the name of the person who are the alleged entry provider. The nature of the entry i.e. in which form the assessee is alleged to be taking entries is given. The information only says that some ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore recording his own satisfaction of escaped income and initiating reassessment proceedings. The Assessing Officer had thus acted only on the basis of suspicion and it could not be said that it was based on belief that the income chargeable to tax had escaped income. The Assessing Officer had to act on the basis of "reasons to believe" and not on "reasons to suspect". The Tribunal rightly concluded that the Assessing Officer had failed to incorporate the material and his satisfaction for reopening the assessment and therefore the issuance of notice under section 148 of the Act for reassessment proceedings was not valid." 8. That the CIT(A) has also allowed relief to the assessee following the above decision of Hon'ble Jurisdictional ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asefield. Indrus was a company in which Andaleeb Sehgal was interested. In the statement, the assessee had admitted his role under the oil allocations as an introducer. The statements made by the assessee before the Enforcement Directorate were before the Assessing Officer when he recorded the reasons. Andaleeb Sehgal had also given a statement before the Enforcement Directorate. This statement was also before the Assessing Officer when he recorded the reasons. In this statement, Andaleeb Sehgal had referred to the arguments which he had with the assessee regarding Indrus not receiving any remuneration from the second oil contract. Ultimately some money appears to have been received by Indrus from Masefield as commission. Andaleeb Sehgal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between the assessee and Indrus was established." 9. Thus, in the above mentioned case, there was material before the Assessing Officer which enabled him to reach a prima facie conclusion with regard to the business connection of the assessee in India. Therefore, on the facts, the decision of Hon'ble Delhi High Court relied upon by the learned DR is different than the facts in the assessee's case and moreover, learned counsel for the assessee relied upon the decision of Hon'ble Jurisdictional High Court which would be binding on all the authorities working within the territorial jurisdiction of the said High Court. We, therefore, find no justification to interfere with the order of learned CIT(A). The same is sustained and ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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