9911796707
TMI Blog2015 (8) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... on received from the investigation wing was valid. 2. On the facts and circumstances of the case and in law, the ld CIT(Appeals), XV, New Delhi has erred in confirming addition of Rs. 20,03,000/- made by Assessing office u/s 143(3) of the Income Tax Act, 1961. 3. That the ld CIT(A) has erred in not disposing off ground No.4 regarding charging of interest u/s 234B of the Income Tax Act, 1961." 2. Briefly stated facts of the case are that the assessee has filed return of income on 02.12.2003 declaring a loss of Rs. 1,11,850/- and the A.O. processed the same u/s 143(1) of the I. T. Act, 1961. The case of the assessee was selected for scrutiny on the basis of information received from DIT (Investigation) that the assessee company has rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perty located at Simla which appears in the balance sheet under the head "Current Liabilities" as advance against the sale of property. The AO has however held that the assessee has channelized its own money in the shape of money received against the property with the help of the Polo Leasing and Financing Pvt. Ltd as mentioned above and to give colour accommodation entries in the name of this party was never beyond the control of the assessee as discussed above and hence addition of Rs. 18,91,150/-. 4. The A.O. completed assessments u/s 143(3) / 147 of the I. T. Act, 1961 vide order dated 30.12.2010. the assessee challenged the order of A.O. before Ld. CIT(A) who vide order dated 04.01.2012 dismissed the appeal filed by assessee by uphol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving jurisdiction over the assessee and not by anyone else with the reason to believe that income has escaped assessment, must be framed by the concerned officer alone and not by anyone else. On satisfaction of A.O. and formation of belief by him must be bona fide and after proper and objective application of mind by him to the facts and circumstances of the case and material on record. If the A.O. does not apply his mind in forming belief in objective manner, then the action in issuance of notice mechanically, is void ab initio. Ld. counsel for the assessee further submitted that the assessee has raised objections before the A.O. but the same have wrongly been rejected in a routine manner which is contrary to the decision of Hon'ble Jurisd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT (Inv.) regarding bogus accommodation entry worth Rs. 20,.03,000/-, the notice was issued by the A.O. to the assessee. Secondly, the A.O. after receiving necessary approval from the competent authorities has issued notice u/s 148 to the assessee and also provided opportunity to the assessee to raise objection and file the reply if any. The A.O. has also recorded valid reasons on the basis of evidence available with him and reopening of the assessment in the case of the assessee and he has also provided reasons recorded to the assessee against which the assessee has raised objection and the same was elaborately discussed and decided by passing speaking order by the A.O. In view of the facts and circumstances, of the case, we are of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reement to sell in question was a bogus and frivolous one to provide credit entry to the assessee. The details of accommodation entry received are noted as under: BENIFICIARY BANK NAME BENFICIARY BANK BRANCH VALUE OF ENTRY TAKEN INSTRUMENT NO. BY WHICH ENTRY TAKEN DATE ON WHICH ENTRY TAKEN NAME OF ACCOUNT HOLDER OF ENTRY GIVING ACCOUNT BANK FROM WHICH ENTRY GIVEN BRANCH OF ENTRY GIVING BANK A/C NO ENTRY GIVING ACCOUNT CBI GREATER KAILASH-11 2003000 16691 10-Jan-03 POLO LEASING & FINANCE P. LTD. PATNAKAR KAROL BAGH 169 2003000 12. Looking into the above facts, we observed that there is not an iota evidence brought on record by the assessee during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acs, admittedly received from M/s. Polo Leasing and Finance Pvt. Ltd, does not arise and in such eventualities M/s. Polo Leasing Finance Company had the right to seek refund within three year commencing from 10th April 2004. It is further observed that in the given circumstances the judgement of the tribunal in the case of Durable Property Pvt. Ltd. (supra) as relied upon by the assessee is not applicable to the facts and circumstances of the present case because the agreement of sale in question is proved to be a sham transaction having been prepared to provide accommodation entry and as such, the question of providing protection to the same u/s 51 of the Income Tax Act does not arise. 13. In view of above, we affirm the order of Ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
