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TMI Blog2016 (12) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the assessee for the asstt. Year in dispute is bad in law and deserves to be quashed - Decided in favour of assessee. - ITA No. 4422/Del/2013 - - - Dated:- 4-10-2016 - Shri H. S. Sidhu, Judicial Member Assessee by : Sh. Venkatesh Chaurasia, Adv Revenue by : Sh. Amrit Lal, Sr. DR ORDER Per H. S. Sidhu, J. M. The Assessee has filed the Appeal against the Order dated 18.3.2013 of the Ld. CIT(A)-Bareilly pertaining to assessment year 2002-03 and raised the following grounds:- 1. The Ld. CIT (Appeals) erred in law and on facts in dismissing the appeal filed by the assessee. 2. The Ld. CIT (Appeals) erred in law and on facts in not appreciating the judicial pronouncements relied upon by the assessee against a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of appeal. 2. The brief facts of the case are that the assessee filed her return of income on 10.7.2002 declaring total income of ₹ 79,990/-. The return of income was duly processed u/s. 143(1) of the I.T. Act, 1961 on 23.1.2003. The assessee enjoys income from short term capital gains and income from other sources which includes interest on dividend and from Rajshree Cold Storage (P) Ltd. Later a list of beneficiaries involved in accommodation entry scam was received from Commissioner of Income Tax, Moradabad vide his letter dated 19.10.2007 in which assessee s name find place. Therefore, a proposal u/s. 147 was sent to the Addl. CIT and accordingly, after his approval, notice u/s. 148 of the I.T. Act was issued on 26.3.2008. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the reasons recorded are invalid and contrary to law and facts and there is no satisfaction as per law u/s. 151 of the Act. He further draw our attention towards the copy of reasons for reopening the case u/s. 148 and stated that no proper reasons were recorded; no nexus between the materials relied upon and the belief formed for escapement of income; no application of mind; no proper satisfaction was recorded before issue of notice u/s. 148; no independent conclusion that there was escapement of income. It was further stated that the case was reopened only on the basis of Investigation Wing information which suffers with serious debility and lacks definiteness, without describing the basic aspects of alleged transaction and in the absen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from short term capital gain and income from other sources of ₹ 79,990/- in assessment year 2002-03. Information has been received from DIT(System) through a CD where the names of beneficiaries who got adjustment entries have been mentioned. The name of the assessee with details (matching as those filed the return) have been correlated. The assessee had received adjustment entry of ₹ 2,00,300/-. On a perusal of case records of the assessee, it is seen that the assesee failed to disclose the material facts in this connection in the return of income filed by him as mentioned above. I have, therefore, reason to believe that the income of the assessee to the tune of ₹ 2,00,300/- has escaped assessment as per provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing and on that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account by way of above accommodation entries. The above conclusion is unhelpful in understanding whether the AO applied his mind to the materials that he talks about particularly 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 Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, the conclusion reached by the ITAT cannot be said to be erroneous. No substantial question of law arises. 15. The appeal is dismissed. 9. In view of above, I am of the considered view that the aforesaid issue in dispute is exactly the similar and identical to the issue involved in the present appeal and is squarely covered by the aforesaid decision of the Hon ble High Court of Delhi in the case of G G Pharma (Supra). Hence, respectfully following the above precedent in the case of Pr. CIT-4 vs. G G Pharma India Ltd. (Supra) I decide the legal issue in dispute in favor of the Assessee and against the Revenue and accordingly quash the reassessment proceedings and allow the legal issue. Since I have already quashed the reassessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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