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TMI Blog2017 (5) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... cross examine the statement of Shri Aseem Kumar Gupta Hon'ble Supreme Court in the case of Kishinchand Chellaram vs. CIT [1980 (9) TMI 3 - SUPREME Court] 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 the assessment order and that no finding to that effect have been given, therefore, in my view the matter requires reconsideration at the level of the Assessing Officer- Appeal of assessee is partly allowed for statistical purpose. - ITA Nos. 6336, 6337/Del/2016 - - - Dated:- 9-5-2017 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER For The Assessee : Shri A.N. Prasad Shri M.K. Srivastava, Advocate For The Department : Ms.Bedobani, Sr. DR Per BHAVNESH SAINI, Judicial Member ORDER Both the appeals by assessee are directed against different orders of Ld. CIT IX New Delhi dated 13th September, 2016 for assessment year 2008-09 and 2010-11. 2. Ld. Representative of both the parties mainly argued in assessment year 2008-09 and submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. The Assessing Officer has reopened assessment u/s 147 of the Act by making an allegation that assessee has taken accommodation entries in the form of unsecured loans. The allegation was made on the basis of report of investigation wing, New Delhi. The reasons recorded do not show any application of mind nor the same show any belief independently arrived at by the Assessing Officer. The assessee relied upon several decisions in support of its contention. Ld. CIT(A) however noted that there is tangible material to reopen the assessment and found that investigation wing has clearly provided that Shri Aseem Kumar Gupta admitted to have provided accommodation entries to the assessee and details are brought on record to prove assessee has taken accommodation entry for adjusting unaccounted money. The Assessing Officer has reason to believe income chargeable to tax has escaped assessment. Therefore reopening was held to be justified because it discloses prima facie case for reopening of the assessment. Ld. CIT(A) relied upon decision of the Supreme Court in the case of M/s. Raymond Woolen Mills vs ITO 236 ITR 34 (Supreme Court), decisions of Delhi High Court in the cases of Rajat Expor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... beneficiaries. The investigation wing has compiled a report date of the beneficiaries of such entries along with the modus operandi of Sh. Aseem Kumar Gupta. I have gone through the report and data sent by Investigation Wing. The report clearly indicates that accommodation entries have been provided and his various companies are used for this purpose. The Investigation Wing s list of beneficiaries (of such accommodation entries), gives comprehensive details of Beneficiary s Name and even the person from which such entry is received. This list contains the name of M/s. UV Associates (P) Ltd. which has taken such accommodation entries as below : 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s contended by the Ld. DR. The Assessing Officer in the reasons has specifically mentioned that he has gone through the report and data sent by investigation wing which indicated that accommodation entry has been received by assessee. Therefore Assessing Officer has applied his mind independently to the information provided by the investigation wing. Assessing Officer after going through information and material on record formed his belief that income chargeable to tax has escaped assessment. Thus there was a specific tangible material and information was available on record of assessment that income chargeable to tax has escaped assessment. Therefore there was a prima facie case made out for reopening of the assessment. The sufficiency or correctness of the material is not a thing to be considered at the stage of reopening of the assessment. The decisions relied upon by Ld. CIT(A) support his findings. I therefore do not find any infirmity in the orders of the authorities below in reopening the assessment in the matter. This ground of appeal of assessee is accordingly dismissed. 11. Ld. Counsel for assessee on merit submitted that the report of investigation wing and statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer. I accordingly set aside the orders of authorities below on merit with regard to addition of ₹ 10 lacs and restore this issue to the file of Assessing Officer with direction to redecide this issue afresh strictly on merits by giving a reasonable sufficient opportunity of being heard to the assessee. Assessing Officer is directed to supply copy of the report of the investigation wing and copy of statement of Shri Aseem Kumar Gupta to the assessee. In case assessee may ask for cross examination to statement of Shri Aseem Kumar Gupta. Assessing Officer will take steps accordingly. The Assessing Officer shall pass a reasoned order discussing the material on record and evidences furnished by assessee on record in support of claim of genuine loans received from above two companies. This ground of appeal of assessee is allowed for statistical purposes. 13. In the result the appeal of assessee is partly allowed for statistical purpose. Assessment year 2010-11 14. In this appeal also assessee challenged the reopening of assessment u/s 147 of the I.T. Act and addition of ₹ 25 lacs on account of accommodation entries. Following the reasons for decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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