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TMI Blog2016 (4) TMI 1141X X X X Extracts X X X X X X X X Extracts X X X X ..... - ITA No. 4014/Del./2014 - - - Dated:- 28-4-2016 - Sh. N. K. Saini, AM AND Sh. H.S.Sidhu, JM For the Appellant : Sh. V.S.Rastogi, AR For the Respondent : Sh. V.R.Sonbhadra, Sr. DR ORDER PER N.K. SAINI, A.M. This is an appeal by the Assessee against the order dated 27/02/2014 of the C.I.T.(A)-XXXIII, New Delhi. Following grounds have been raised in this appeal : 1. That on the facts and circumstances of the case and in law, the Commissioner of Income Tax (Appeals)-XXXIII, New Delhi erred in rejecting appellant s contention that assessment order made by Assessing Officer was bad in law and void abinitio. 2. That without prejudice, on the facts and circumstances of the case and in law, the Commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant to the assessment year under consideration. The AO thereafter initiated the proceedings u/s 147 of the Act. In response of the said notice, the assessee filed the return of income on 25.4.2011 declaring the same income which was disclosed in the original return filed on 4.10.2004. The assessee also filed objection on 5.9.2011 against the initiation of proceedings u/s 147 of the Act but the same were rejected by the AO. Thereafter, the AO framed assessment by making addition of ₹ 9,00,000/-, at an income of ₹ 9,90,950/-. 4. Being aggrieved the assessee carried the matter to the ld. CIT(A) and challenged the validity of initiation of the proceedings u/s 147 to the Act. However, the Ld. CIT(A) did not find merit in the sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been given in para 6 to 8 of the said order which read as under : 6. Having gone through the above cited decisions, especially the recent decisions of Hon ble jurisdictional High Court of Delhi in the case of CIT vs. G G Pharma India Ltd. (supra), we find that the Hon'ble High Court after detailed discussion on the issue and after discussing several decisions cited before the Hon ble Court has been pleased to come the following conclusion vide para Nos. 12 and 13 of the decision, which are relevant to adjudicate upon the issue raised before us in the present case, are being reproduced hereunder: 12. In the present case, after setting out four entries, stated to have been received by the assessee on a single date i.e. 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rials in order to have reasons to believe that the income of the assessee escaped assessment is missing in the present case. 13. Mr. Sawhney took the court through the order of the Learned CIT(Appeals) to show how the CIT(A) discussed the materials produced during the hearing of the appeal. The court would like to observe that this is in the nature of a post mortem exercise after the event of reopening of the assessment has taken place. While the CIT may have proceeded on the basis that the reopening of the assessment was valid, this does not satisfy the requirement of law that prior to the reopening of the assessment, the A.O. has to apply his mind to the materials, conclude that he has reason to believe that income of the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing accommodation entries to various persons/beneficiaries through a large no. of shell companies/concerns floated by effectively controlled by him. He operated a number of accounts in the same bank/branch or in different branches, in the names of these shell companies/concerns. After receiving cash from the beneficiaries, Sh.S.K. Gupta used to deposit the same in the bank account of one of the these shell companies/concerns. Then he used to route the entries through two to four accounts of these shell companies/concerns before ultimatelytransferring same to the bank accounts of tire beneficiaries to give the color of genuineness to these transactions. 3. Further, as per the information received from the ACIT, Central Circle-19, New ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the materials that he talks about particularly since he did not describe what those material were. Hon'ble High Court has observed further that once the date on which the so-called accommodation entries were provided is known, it would not have been difficult for the Assessing Officer, 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. It was held that without forming a prima facie opinion, on the basis of such material, it was not possible for the Assessing Officer 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. The basic requirement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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