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TMI Blog2017 (3) TMI 675X X X X Extracts X X X X X X X X Extracts X X X X ..... ITAT DELHI ] - Decided in favour of assessee - ITA No. 3753/DEL/2015 - - - Dated:- 10-3-2017 - SHRI H.S. SIDHU, JUDICIAL MEMBER For The Assessee : Sh. Tarun Kumar Batra, CA For The Revenue : Ms. Bedobina Chaudhuri, Sr. DR ORDER The Assessee has filed the Appeal against the Order dated 19.3.2013 of the Ld. CIT(A)-6, Delhi pertaining to assessment year 2005-06 and raised the following grounds:- 1. The Assessing Authority has erred in taking action u/s. 147 of the Act as he has not applied his mind while issuing a notice u/s. 148 of the Act and Ld. CIT(A) has confirming the action of ITO, Ward 6(2). 2. The Assessing Authority has erred in making an addition of ₹ 6 lacs to the declared income from undisclosed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id 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 32 attaching therewith the copy of Paper Book filed before the CIT(A); Copy of notice u/s. 148 of the I.T. Act; copy of letter dated 16.4.2012 requesting for providing reasons recorded for reopening of the case; copy of our letter dated 30.4.2012 requesting for supply of the reason recorded; and copy of reason for belief for income has escaped assessment. 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 preconditions f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly recorded the reasons for reopening by due application of mind, hence, the appeal of the Assessee may be dismissed. 7. I have heard both the parties and perused the relevant records available with us, especially the orders of the revenue authorities and the case law cited by the assessee s counsel on the issue in dispute. In my view, it is very much necessary to reproduce the reasons recorded by the AO before issue of Notice to the Assessee u/s. 148 of the I.T. Act, 1961 which is reproduced hereunder:- Reasons for the belief that income has escaped assessment: In this case, information was received from the Director of Income Tax (Investigation), New Delhi that the assessee had received an amount of ₹ 9,00,000/- as fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts, the alleged transaction is not the bona fide one. Therefore, I have reason to believe that an income of ₹ 9,00,000/- has escaped assessment in the assessment year 2005-06 due to the failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment so far as this amount is concerned. Therefore, this case is fit for issuing notice u/s. 148 of the Income Tax Act, 1961. In this case the assessment was made u/s. 143(1), not u/s. 143(3) of the I.T. Act, 1961. I am therefore, satisfied that the said income, on account of accommodation entry worth ₹ 9,00,000/- received by the assessee has escaped of assessment and accordingly, after recording the above said reason as laid down unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, 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 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 alo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scue an inherently defective reopening order from invalidity . 14. In the circumstances, 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 re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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