9911796707
TMI Blog2009 (12) TMI 953X X X X Extracts X X X X X X X X Extracts X X X X ..... brief, assessee has challenged the reopening of assessment by issuance of a notice under sec. 148 of the Income-tax Act, 1961. Since it is a jurisdictional issue, therefore, we take this ground first. 2. The brief facts of the case are that the assessee company was incorporated on 25.6.1996. It is engaged in the business of finance, consultancy and investment in securities. It has filed its return of income on 30th September, 2002 declaring total income of ₹ 2200. The return was processed under sec. 143(1) of the Act. The Assessing Officer had received an information from DIT(Inv.) on 16.6.2006 whereby it was communicated to the Assessing Officer that one M/s. MKM Finsec (P) Ltd. is involved in providing accommodation entries to va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of DIT(Inv.) without his independent application of mind and without any supporting material on record which could have established that the transactions, alleged as accommodation entry has escaped assessment. He relied upon the case laws noted by the learned CIT(Appeals) in paragraph 6 of his order, and prayed that reopening of assessment be declared null and void. Learned DR on the other hand relied upon the order of learned CIT(Appeals). He took us through the reasons for reopening extracted by Learned First Appellate Authority on page 2 of the order. He pointed out that Assessing Officer got an information from DIT. He applied his mind and arrived at a conclusion that income has escaped assessment. No fault can be attributed to the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his finding, we do not find any error in it. We uphold the reopening of assessment by issuance of a notice under sec. 148. The grounds raised in the cross-objection are accordingly rejected. 5. The solitary grievance in the revenue s appeal is that learned CIT(Appeals) has erred in deleting the addition of ₹ 40 lacs. The brief facts of the case are that assessee company during the year has sold parts of the investment in equity shares through M/s. MKM Finsec (P) Ltd. and received a payment of ₹ 40 lacs on different dates through account payee cheque. The Assessing Officer sought the explanation of the assessee to prove the sales and genuineness of the sale proceeds. In response to the query of Assessing Officer, assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown to the department in earlier years. It has sold its investment partly without showing any capital gains or capital loss. In such situation, the sale need not to be doubted. 7. With the assistance of learned representatives, we have gone through the records carefully. There is no dispute to the facts that investment in the equity shares of M/s. Young Builders and M/s. Youth Construction was made in the earlier years. The shareholding with the assessee of these two companies available in the opening stock of this year are not being shown to the extent sale has been claimed by the assessee in its books of account as closing stock at the end of the year. The assessee has filed confirmation from the broker, confirmation from the compani ..... X X X X Extracts X X X X X X X X Extracts X X X X
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