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TMI Blog2016 (5) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... on allegedly received by him from the Directorate of Income Tax (Investigation), New Delhi. Keeping in view of the facts and circumstances of the present case and the case law applicable in the case of the assessee, we are of the considered view that the reopening in the case of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed. - Decided in favor of the Assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... n support of the share capital received as against oral alleged statement made by some unknown person before the Director of investigation, without making the statement available to the appellant for rebuttal or without giving the opportunity to cross examine the person making the statement? 5. Whether (IT (A) was legally justified in rejecting the appeal even without considering the following points and submissions made to him through written submissions during the appeal proceedings: i) Fresh confirmation with copies of income tax returns for the assessment year 2002-03 and assessment year 2012-13 with PAN details of both the companies filed before him ii) Copies of ROC returns filed before him. iii) List of Directors of both ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sentative attended the assessment proceedings and during the assessment proceedings AO noticed that the accommodation entries in the garb of share application money. Thus, the assesse has introduced its own undisclosed income in its books of accounts routing it through the entry providers. Hence, an amount of ₹ 15 lacs shown by the assessee as share application money received from various parties was treated as assessee's undisclosed income an accordingly the same was added u/s. 68 of the Act and completed the assessment at ₹ 88,88,130/- u/s. 147/143(3) of the Act vide order dated 24.12.2009. 4. Against the Order of the Ld. AO, assessee appealed before the Ld. CIT(A), challenging the validity of reassessment as well as the addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opening. 8. We have heard both the parties and perused the relevant records available with us, especially the orders of the revenue authorities and the case law cited by the assessee's counsel on the issue in dispute. In our view, it is very much necessary to reproduce the reasons recorded by the AO before issue of Notice to the Assessee u/s. 148 of the I.T. Act, 1961 which is reproduced hereunder:- "F.No. DCIT Cir.14(1)/148/2009-10/144 Office of the Asstt. Commissioner of Income Tax Circle 14(1), New Delhi Dated : May 13, 2009 The Principal Officer, M/s Pankaj Gas Cylinders Ltd., 138, UGF, World Trade Centre Babar Road, New Delhi - 110 001 Sir, Sub:- Notice u/s. 148 of the Income Tax Act, 1961 for the asstt. Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 15,00,000/-, in the FY 2001-02 relevant to AY 2002-03 under the garb of share application money/ share capital. In views of the above discussion, I have reason to believe that income at least to the extent of ₹ 15,00,000/- for the assessment year 2002-03 had escaped assessment within the meaning of provisions of section 147(c) of the I.T. Act, 1961. To assess this escaped income, proceedings u/s. 147 of the Income Tax Act, 1961 are initiated." Yours faithfully, Sd/- (S.B. Singh) Asstt. Commissioner of Income Tax Circle 14(1), New Delhi" 8.1 After going through the reasons recorded by the AO, we are of the view that AO has not applied his mind so as to come to an independent conclusion that he has reason to believe tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... larly since he did not describe what those materials were. Once the date on which the so called accommodation entries were provided is known, it would not have been difficult for the AO, if he had in fact undertaken the exercise, to make a reference to the manner in which those very entries were provided in the accounts of the Assessee, which must have been tendered along with the return, which was filed on 14th November 2004 and was processed under Section 143(3) of the Act. Without forming a prima facie opinion, on the basis of such material, it was not possible for the AO to have simply concluded: "it is evident that the assessee company has introduced its own unaccounted money in its bank by way of accommodation entries". In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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