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TMI Blog2016 (2) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... d and paid up. The assessee had shown total receipts in its hands at ₹ 51.30 lacs which consists of ₹ 48 lacs as share capital, ₹ 1.5 lacs as Rent, ₹ 91,608 as interest and ₹ 86,215 as sale of agricultural produce, which all stood accepted by the AO u/s. 143(3) of the Act. The ld. DR failed to adduce any tangible material to show that a sum of ₹ 62 lacs represented unaccounted money rotated through Shri Surender Kumar Jain group of cases. Therefore, mere information conveyed by DIT does not constitute to be a tangible material to re-assess the assessee company without any independent enquiry or application of mind. In presence of all these facts, we are of the considered opinion that the action initia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ducted by the investigation wing, New Delhi and it was also conveyed by the DI(Inv.)-II, New Delhi vide letter dt. 26.03.2012 that Sh. Surendra Kumar Jain Goup of cases is accommodation entry operator only accommodation entry has been provided to M/s. Light Carts Pvt. Ltd. no actual transaction has taken place. As the amount is credited in the books of A/cs of M/s. Light Carts Pvt. Ltd., Meerut and the company M/s. Light Carts Pvt. Ltd. has no business transaction with Sh. Surendra Kumar Jain Group of cases before or after the transaction took place and no interest/dividend is paid to sh. Surendra Kumar Jain. Considering the reported activities of Sh. Surendra Kumar Jain Group of cases looking to the facts of the case it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are void ab initio and are liable to be quashed. It was submitted that the notice u/s. 148 of the Act for initiation of proceedings u/s. 147, was issued on 27.03.2012, which is beyond the period of limitation of four years. It was also submitted that all the material facts, necessary for assessment were placed before the AO at the time of original assessment proceedings pertaining to the transaction of share application money, which stood accepted by AO passing the original assessment order. Even the reasons recorded nowhere mention that any income chargeable to tax was escaped from assessment due to failure/omission on the part of assessee to disclose fully and truly all material facts necessary for assessment. Therefore, on this legal gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment, for that assessment year In order to resort to this proviso, the Assessing Officer is legally required to record a satisfaction that a particular income chargeable to tax had escaped assessment by reason of the failure on the part of the assessee to make full and true disclosure of all material facts necessary for its assessment. A perusal of the reasons recorded reveals that in the reasons recorded, there is no whisper of any allegation that the assessee had failed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 91,608 as interest and ₹ 86,215 as sale of agricultural produce, which all stood accepted by the AO u/s. 143(3) of the Act. The ld. DR failed to adduce any tangible material to show that a sum of ₹ 62 lacs represented unaccounted money rotated through Shri Surender Kumar Jain group of cases. Therefore, mere information conveyed by DIT does not constitute to be a tangible material to re-assess the assessee company without any independent enquiry or application of mind. In presence of all these facts, we are of the considered opinion that the action initiated against the assessee u/s. 147 is not legally valid and is liable to be quashed. Once, the re-assessment proceedings are held as void on this legal aspect, we need not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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