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TMI Blog2017 (1) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... notice under Section 147, in the circumstances of the case? (b) Is the impugned order of the Tribunal justified in so far as it directs the deletion of sums brought to tax by the Assessing Officer under Section 68?" 2. The assessee had in its return for the Assessment Year (AY) 2001-02 claimed that sum of Rs. 1,00,00,000/- (One Crore) was received towards share application amounts and a further sum of Rs. 35,00,000/- (Thirty Five Lakhs) was credited to it as an advance towards loan. The original assessment was completed under Section 143(3) of the Income Tax Act, 1961 (hereinafter to be referred as 'the Act'). However, pursuant to the reassessment notice, issued on 25.03.2008, which was dropped due to technical reasons, and later notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 151 of the Act. 6. The learned counsel relied upon the actual noting which approved the reasons put up to the CIT (A) under Section 151 and submitted that the Commissioner had applied its mind to all the surrounding circumstances while authorizing the reopening and in the circumstances, the adverse findings recorded by the ITAT cannot be sustained. Learned counsel next submitted that on the merits, the CIT (A) and the ITAT's findings cannot be sustained and are unreasonable in the circumstances. It was urged that when notices were issued under Section 131 to the alleged investors/creditors, it was found that substantial majority of them were missing or not found at the addresses given. Furthermore, the bank statements furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not find the premises of these investors after seven years did not mean that the transactions were not genuine. Learned counsel submitted that the AO could well have conducted an appropriate inquiry into the income tax records to discern whether the authorities were genuine and had sufficient credit to invest or advance the amounts. In the absence of such enquiry, the onus could not have shifted back to the assessee in terms of the judgment in Lovely Exports' case (supra) since it had clearly shown the identities of the investors/creditors, their bank accounts and the creditworthiness of such party. 8. As far as the addition is concerned, the assessee had furnished large amounts of materials in the form of documents to evidence the genuine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) and the ITAT on this issue. 10. As far as the first issue with respect to the approval granted to reopen the assessment under Section 147/148 of the Act is concerned, the relevant noting is as follows:- "Reasons for issuing notice u/s 148 of the Act in the case of M/s N. C. Cables Limited, for the A. Y. 2001-02-reg. Information has been received from the Investigation Wing of the Income Tax Department that the above named assessee is a beneficiary of accommodation entries received from certain established entry operators identified by the Wing during the period laundering for the beneficiaries and on the basis of investigation carried out and evidences collected, a report has been forwarded. I have perused the information contained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rading P. Ltd. - 500500 33612 24.3.2001 -do- 225 During the course of the proceedings u/s 148 for the same assessment year, which Was dropped on the technical ground that proper sanction was not obtained, it was noticed that there are other receipts also from the identified entry operators. Information about those entries was not available in the data received from the Investigation Wing. Nevertheless they also fall within the ambit of section 68 of the Act. The assessee has received unexplained sums from the entry operators as per the above details as per information available with the undersigned. As explained above the identity, creditworthiness and genuineness of transactions with the persons found to be entry operator ..... X X X X Extracts X X X X X X X X Extracts X X X X
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