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TMI Blog2015 (12) TMI 1079X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 148 of the said Act was quashed for being issued after the expiry of four years from the relevant assessment year, wherein there was no specific mention of which material facts were not disclosed by the assessee in the course of its original assessment proceedings under Section 143(3) of the said Act. In the present case also there is not even a whisper of the allegation that there has been a failure on the part of the assessee to disclose fully and truly all material particulars necessary for assessment. - Decided in favour of assessee - W. P. (C) 9094/2014 - - - Dated:- 11-12-2015 - Badar Durrez Ahmed And Sanjeev Sachdeva, JJ. For the Petitioner : Mr Sanjeev Sabharwal, Sr Advocate with Mr Deepak Sharma For the Respondents : Mr Rohit Madan with Mr Akash Vajpai JUDGMENT Badar Durrez Ahmed, J (Oral) 1. This writ petition pertains to the assessment year 2007-08 and seeks the quashing of the notice dated 23.08.2014 issued by the respondent No.1 under Section 148 of the Income Tax Act, 1961 (hereinafter referred to as the said Act ) as also all proceedings pursuant thereto, including the order dated 26.09.2014, passed by the respondent No.1, dismissing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee Company it could be seen that you have made certain kinds of transactions with this company. You are requested to give a certified copy of the Ledger Account maintained by you in respect of the above mentioned assessee company giving necessary evidence with date-wise details and nature of such transaction made with this company alongwith your source thereof in respect of such transaction with you bank statement for the relevant period and latest copy of ITR. The above information should reach my office by 10-12-2009 failing which penalty u/S 272 A of the Income Tax Act, 1961 may be initiated. Yours faithfully Sd/- (PIYUSH SINHA) Income Tax Officer, Ward-8(3), New Delhi. 5. The response to the said letter was given by M/s Sino Credits and Leasing Limited by issuing a confirmation letter to the following effect:- SINO CREDITS AND LEASING LIMITED STOCK AND SHRE BROKERS MEMBER: NATIONAL STOCK EXCHAGNE OF INDIA LIMITED : OTC EXCHANGE OF INDIA CONFIRMATION LETTER This is to confirm that we have paid Share Application Money of ₹ 58,90,000/- (Fifty Eight Lac Ninety Thousand only) vide Cheque /DD No. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 KSA Chits 2000000 i. Confirmation Letter filed i. Confirmation Letter recd ii. IT Return filed ii. IT Return recd iii. Bank Statement filed iii. Bank Statement recd 6 New Star 1000000 Confirmation Letter filed i.Confirmation Letter recd ii. IT Return recd iii. Bank Statement recd 7 Sino Credits and Leasing Ltd 2000000 i.Confirmation Letter filed i. Confirmation Letter recd ii. IT Return filed ii. IT Return recd iii. Bank Statement recd 8 V.A. Foods 1000000 -- i. Confirmation Letter recd iii. Bank Statement recd 9 Vasudeva Farms 1000000 i. Confirmation Letter filed i.Confirmation Letter recd ii. IT Return filed ii. IT Return recd iii. Bank Statement recd 10 Vijay Conductors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .R attended the proceedings and submitted the requisite details/ information/ documents from time to time. Case was discussed with him. 8. It is clear that after the Assessing Officer examined the aspect of the share application money received by the assessee through the issuance of a questionnaire and notices under Section 133(6) of the said Act, the assessment under Section 143(3) of the said Act was framed on 18.12.2009. 9. The learned counsel for the petitioner placed reliance on the decision of this Court in Lahmeyer Holding GMBH v. Deputy Director of Income Tax: [2015] 376 ITR 70 (Delhi) to submit that the re-assessment proceedings would be invalid in case an issue or query is raised and answered by the assessee in the original assessment and yet, the Assessing Officer does not make any addition in the assessment order. In such situations, it would have to be accepted that the issue had been examined, but the Assessing Officer did not find any ground or reason to make any addition or reject the stand of the assessee. Relying on the said decision, it was also submitted that when such an exercise is undertaken by the Assessing Officer, it can be regarded as a case wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pursuant thereto have to be set aside for the simple reason that the clear pre-conditon of there being a failure on the part of the assessee to fully and truly disclose all the material particulars necessary for assessment, has not been made out. In fact, if one looks at the reasons which have been supplied for initiating re-assessment, there is not even an allegation that there has been such a failure on the part of the petitioner/ assessee. For the sake of convenience, the reasons are set out herein below:- Income Tax Department 26/02/2014 Reasons for reopening the case of M/s Shri Parasram Industries P. Ltd. (AABCS7930D) A.Y. 2007-08, U/s 147/148 of the Income Tax Act, 1961 1. Information /documents in the form of CD has been received from the office of ACIT, Central Circle 22-New Delhi wherein it was revealed that the above assessee, M/s Shri Parasram Industries P. Ltd. has received and is a beneficiary of accommodation entries provided by certain entry operators. The Investigation Wing of the Department had carried out survey u/s 133A in the case of Shri Suresh Kumar Gupta (S.K. Gupta) on 20.11.2007. It was gathered that Sh.S.K. Gupta who is having his office at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 00,000 10.04.2006 Ch. No.750092 dt. 11.04.06 Vasudeva Farms SIB Shri Parasram Indus. P. Ltd. 9,00,000 10.04.2006 Ch. No.750093 dt. 10.04.06 Vasudeva Farms SIB Shri Parasram Indus. P. Ltd. 6,00,000 10.04.2006 Ch. No.775320 dt. 11.04.06 V.A. Foods SIB Shri Parasram Indus. P. Ltd. 6,00,000 10.04.2006 Ch. No.793197 dt. 17.04.06 Central Gum SIB Shri Parasram Indus. P. Ltd. 30,00,000 10.04.2006 Ch. No.287098 dt. 15.04.06 Dhamaka Trading OBC Shri Parasram Indus. P. Ltd. 10,00,000 10.04.2006 Ch. No.397652 dt. 13.04.06 Giriasho Company OBC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000 08.06.2006 Ch. No. 152512 dt. 07.06.06 Sino Credits Bus A/c HDFC Shri Parasram Indus. P. Ltd. 10,00,000 29.06.2006 Ch. No. 776932 dt. 27.06.06 Omni Farms SIB Shri Parasram Indus. P. Ltd. 6,50,000 29.06.2006 Ch. No. 505419 dt. 29.06.06 Vishrut Marketing OBC Shri Parasram Indus. P. Ltd. 8,50,000 3. This case was completed under scrutiny assessment in the F.Y. 2009-10 and it is observed that the said information about receipt of accommodation entry was not received at the time of original assessment. In view of the above discussed factual matrix, additional information/documents received from the Investigation Wing of the Income Tax Department and the various Judgments of the Hon'ble Supreme Court and Hon'ble High Courts, I have reason to believe that income of ₹ 2,85,000/- chargeable to tax has escaped a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by reason of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment, any action taken by the Assessing Officer under section 147 beyond the four year period would be wholly without jurisdiction. Reiterating our view-point, we hold that the notice dated March 29, 2004, under section 148 based on the recorded reasons as supplied to the petitioner as well as the consequent order dated March 2, 2005, are without jurisdiction as no action under section 147 could be taken beyond the four year period in the circumstances narrated above. (underlining added) 15. A reference was also made to Swarovski India Limited v. Deputy CIT: [2014] 368 ITR 601 (Delhi), wherein a notice under Section 148 of the said Act was quashed for being issued after the expiry of four years from the relevant assessment year, wherein there was no specific mention of which material facts were not disclosed by the assessee in the course of its original assessment proceedings under Section 143(3) of the said Act. In the present case also there is not even a whisper of the allegation that there has been a failure on the part of the assessee to disclose ..... X X X X Extracts X X X X X X X X Extracts X X X X
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