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TMI Blog2016 (6) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... tisfy the requirements of s. 147 of the Act. The reasons and the information referred to is extremely scanty and vague. There is no reference to any document or statement. Further, it is apparent that the AO did not apply his own mind to the information and examine the basis and material of the information. The AO accepted the plea on the basis of vague information in a mechanical manner. The reasons recorded reflect that the AO did not independently apply his mind to the information received from the DIT (Inv.) and arrive at a belief whether or not any income had escaped assessment. - Decided in favour of assessee - I.T.A. No. 3793/DEL/2014 - - - Dated:- 15-6-2016 - Shri H. S. Sidhu, Judicial Member For the Assessee : Shri Udaibir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rning any income, being of just 21 years of age, having just passed out of the college. Additional ground The appellant respectfully prays for being granted leave to urge and be heard on the following legal ground which requires no investigation of facts and can be decided on the basis of material already on record: 6. That the assessment order dt. 14.11.2008 is void ab initio, having been passed in pursuance of an invalid notice dt. 14.10.2008 issued u/s 143(2) of the Act. 3. The brief facts of the case are that the assessee was not assessed to tax and no return of income was filed for the relevant assessment year. The return of income was filed for the first time in response to notice u/s. 148. Based on the inform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resaid decision of the Hon ble Delhi High Court, hence, the reopening is required to be quashed. 6. On the other hand, Ld. DR controverted the contentions raised by the Ld. Counsel of the assessee and stated that the lower authorities have passed the well reasoned order which does not need any interference on the part of the Tribunal, therefore, the orders of the revenue authorities may be upheld. 7. I have heard both the counsel and perused the records. I find that in the present case the reasons recorded by the AO for initiation of proceedings read as under:- An information was received from Directorate of Inspection (Inv.) that Sh. Gurmeet Singh resident of J-10/20, Rajouri Garden, New Delhi has received ₹ 2,00,000/- thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : Information received from the office of the Director of IT (Inv.)- VI, New Delhi revealed that Mls Signature Hotels (P) Ltd. has introduced unaccounted money in its books of account during financial year 2002-03 through accommodation entry from Mls Swetu Stone PV for ₹ 5lacs. In view of the above, I have reasons to believe that taxable income to the tune of ₹ 5 lac has escaped assessment within the meaning of s. 147 of the IT Act, 1961. 7.2 From reading of the above, it is crystal clear that the aforesaid reasons do not satisfy the requirements of s. 147 of the Act. The reasons and the information referred to is extremely scanty and vague. There is no reference to any document or statement. Further, it is app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capement of income. Further, the Assessing Officer did not apply his own mind to the information and examine the basis and material of the information. There was no dispute that the company, S, had a paid-up capital of ₹ 90 lakhs and was incorporated on January 4, 1989, and was also allotted a permanent account number in September, 2001. Thus, it could not be held to be a fictitious person. The reassessment proceedings were not valid and were liable to be quashed. 8. In the background of the aforesaid discussions, I am of the considered opinion that the facts and circumstances of the present case are similar to that of Signature s Hotel case which was decided by the Hon ble Delhi High Court, as aforesaid, therefore, respectfully ..... X X X X Extracts X X X X X X X X Extracts X X X X
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