9911796707
TMI Blog2017 (5) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer issued questionnaire to the assessee and the assessee responded to the same. 5. In this case inquiries of investigation wing New Delhi of the department have unearthed huge accommodation entry racket being operated by accommodation entry provider Shri Aseem Kumar Gupta. The investigation wing conducted search and survey operations at the office of Shri Aseem Kumar Gupta when confronted with the evidences gathered, Shri Aseem Kumar Gupta admitted to have provided accommodation entries to several beneficiaries. The investigation wing has complied a report and date of the beneficiaries of such entries along with the modus operandi of Shri Aseem Kumar Gupta. The Assessing Officer has gone through the report and data sent by investigation wing which clearly indicated that accommodation entries have been provided and his various companies are used for this purpose. The list contained the name of the assessee company which has taken accommodation entries of Rs. 5 lacs each on 12th February, 2008 and 22nd February, 2008 through banking channel from M/s. Ganpati Fincap Services Pvt. Ltd. and S.G. Portfolio Pvt. Ltd. The Assessing Officer therefore noted that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on merit also considered that assessee filed copy of income tax return, bank statement and confirmation of lender company but in view of the incriminating material found and seized during the course of search operation in the case of Shri Aseem Kumar Gupta confirmed the addition on merit and dismiss this ground of appeal of assessee. Ld. CIT(A) followed several decisions of the High Court in support of his findings. 8. Ld. Counsel for assessee submitted that Assessing Officer has not applied his mind to the information received from investigation wing and has not perused the record. On the other hand Ld. DR submitted that return was originally processed u/s 143(1) only and Assessing Officer has seen all the records before recording the reasons for reopening of assessment. There is a live nexus between reasons and belief formed by the Assessing Officer. Therefore prime facie case is made out for reopening of the assessment. Ld. DR submitted that at this stage of reopening of assessment the sufficiency or correctness of the material is not a thing to be considered. 9. I have considered rival submissions. The assessee has filed copy of the reasons for reopening of assessment at page ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sue of Notice u/s 148 of the Act is being sought. Date 26.7.2013 Sd/- Income Tax Officer Ward 18(2) New Delhi" 10. The reasons recorded by Assessing Officer are based on the information received from investigation wing that Shri Aseem Kumar Gupta provided accommodation entries to the assessee through the company floated by him. There is no denial by the assessee during the course of assessment that the amount in question has been received by the assessee through two companies which have been floated by Shri Aseem Kumar Gupta. Thus a specific information was available to the Assessing Officer on record to prime facie belief that there is an escapement of income in the case of assessee. The information so S.No. Name of Beneficiary PAN NO. OF BENEFICIARY AMOUNT (Rs.) CHEQUE/DD DATE BEANK DETAIL NAME OF THE COMPANY USED FOR PROVIDING ACCOMMODATION ENTRY 1. UV Associates P Ltd. AAACU89168 500000/- 324762 12.02.2008 CORP BANK CP NEW DELHI GANPATI FINCAP SERVICES P LTD. 2. UV Associates P. Ltd. AAACU8916E 500000/- 42461 22.02.2008 CORP BANK CP NEW DELHI SG PORTFOLIO PVT. LTD. provided also discovered the bogus loans taken by assessee. It is well settled law that validity of reasse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e said companies and in support of the explanation assessee filed their ITR, bank statement and confirmation. However, AO has not discussed anything in the assessment order with regard to filing of these documentary evidences in support of explaining genuine loans. The Assessing Officer has not mentioned anywhere if the report of investigation wing or copy of statement of Shri Aseem Kumar Gupta was provided to the assessee at reassessment stage. Similarly there is no mention if the assessee also asked for the copies of the same or requested the Assessing Officer to produce Shri Aseem Kumar Gupta for cross examination on his behalf. The assessee however made such statement before Ld. CIT(A) that documentary evidences were filed and assessee has not been afforded to cross examine the statement of Shri Aseem Kumar Gupta Hon'ble Supreme Court in the case of Kishinchand Chellaram vs. CIT 125 ITR 713 held that when any incriminating material collected at the back of the assessee, the same cannot be read in evidence against the assessee unless same is confronted to assessee and right to cross examination have been provided to the assessee. In the absence of any details mentioned in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
