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TMI Blog2017 (3) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... section 143(3)/147 of the Act at an income of ₹ 44, 82, 092/- as against returned loss of ₹ 15,018/-, and that too without giving any fair and proper opportunity of being heard to the appellant company, thereby, violating the principles of natural justice. 2 That the learned Commissioner of Income Tax (Appeals) has further erred both in law and on facts in sustaining the initiation of the proceedings under section 147 of the Act and, further completion of assessment under section 143(3)/147 of the Act without satisfying the statutory pre-conditions for initiation of the proceedings and, completion of assessment under the Act. 3. That the learned Commissioner of Income Tax (Appeals) has further erred in law and on facts in sustaining the initiation of proceedings uls 147 of the Act on the basis of information received from DIT (investigation) mechanically and without independent application of mind. 3.1 That further, the reasons recorded were mere reasons to suspect and were just to make fishing and roving enquiries, as no independent enquiry was conducted by the assessing officer before issuing such notice under section 148 and as such the proceeding ini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Appeals) further relied on a statement of Sh. S.K. Gupta dated 05.01.2009, which statement was never provided to the appellant company for rebuttal and further no opportunity was given to cross examine the alleged entry operator. Thus, his statement should be excluded altogether and further addition made on the basis of his statement is liable to be deleted as such. 8 That the learned Commissioner of Income Tax (Appeals) has erred in law and on facts in sustaining additions in the hands of assessee company by merely relying on the order of assessment passed by learned AO and not giving any independent finding of his own and as such the appeal so decided by learned CIT (A) is with total non application of mind and also without giving any fair and proper opportunity of being heard to the appellant company., thereby, violating the principles of natural justice. 2. The brief facts of the case are that the assessee originally filed the return on 21.11.2005 declaring loss of ₹ 15,018/-. The return was processed u/s 143(1) of the I.T. Act, 1961. In this case information was received from the Directorate of Income Tax (Investigation) that the assessee company was a be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .CIT(A) who vide his impugned order dated 28.11.2014 has dismissed the appeal of the assessee. 4. Aggrieved with the aforesaid order of the Ld. CIT(A), Assessee is in appeal before the Tribunal. 5. Ld. Counsel of the assessee has filed the Paper Book containing pages 1 to 119 attaching therewith the copy of Return of income alognwith financial statements for the year ended on 31.3.2005; copy of notice under section 148 dated 12.3.2012; copy of reply to AO dated 16.4.2012; copy of reasons recorded provided by AO; copy of reply to AO dated 11.5.2012 containing objections to reopening of assessment; copy of documentary evidences filed before AO in order to establish the sale of share holding in various companies to M/s Passion Chits Pvt. Ltd; and copy of written submission filed before CIT(A). He stated that Ld. CIT(A) has erred in sustaining the initiation of the proceedings under section 147 of the I.T. Act and, further completion of assessment under section 143(3)/147 of the Act without satisfying the statutory pre-conditions for initiation of the proceedings and, completion of assessment under the Act. He further stated that Ld. CIT(A) also erred in sustaining the initiatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Investigation wing on 2006-2007 in the case of Sh. S.K. Gupta who is an accommodation entries provider and it was noticed that had assessee had provided accommodation entries to a large number of beneficiaries. On the basis of the impounded material in the case of Mr. S.K. Gupta and on the basis of further inquires it has been noticed that he inter alia provided accommodation entries of ₹ 45 lakhs to the company M/s Neptune Promoters Pvt. Ltd. having PAN, AAACN 24910 . During the course of search and seizure proceedings in the Taneja Group of cases, the main controlling person of the group Mr. D.N. Taneja in his statement recorded on 07-01-2009 offered the entire (transactions) done with Mr. S.K. Gupta's companies amounting to ₹ 6.23 crores as additional income the respective financial years and in respective companies of his group (there are 15 such companies includes M/s Neptune Promoters Pvt. Ltd) in which accommodation entries of ₹ 45 lakhs for A.Y. 2005-06 have been offered as additional income by Mr D.N. Taneja in-his above mentioned statement tabulated as below. S. No. Date Name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the Directorate of Income Tax (Inv.), 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, I am 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. My view is fully supported by the following judgment/decision:- Pr. CIT vs. G G Pharma India Ltd. in ITA No. 545/2015 dated 8.10.2015 of the Delhi High Court wherein the Hon ble Court has adjudicated the issue as under:- 12. In the present case, after setting out four entries, stated to have been received by the Assessee on a single date i.e. 10th February 2003, from four entities which were termed as accommodation entries, which information was given to him by the Directorate of Investigation, the AO stated: I have also perused various materials and report from Investigation Wing 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 abo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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