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TMI Blog2017 (12) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... l as also a reason to believe that the said entries are accommodation entries. In that view of the matter, we find that the jurisdiction appears to have been validly exercised by the Assessing Officer. - Decided against assessee. - Writ Tax No. 792 of 2017 - - - Dated:- 27-11-2017 - Hon'ble Bharati Sapru And Hon'ble Saumitra Dayal Singh, JJ. For the Petitioner : Rahul Agarwal For the Respondent : S.S.C. ORDER Heard Sri Rahul Agarwal, learned counsel for the petitioner Sri Praveen Kumar, learned counsel for the respondents. This writ petition has been filed to challenge the reassessment proceedings for the Assessment Year 2010-11 initiated by issuance of a notice under Section 148 of the Income Tax Act (he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation received. Sri Praveen Kumar, learned counsel for the revenue on the other hand submits, the information received by the Assessing Officer was definite inasmuch as the person who the petitioner claims made the investment in the petitioner company, had himself denied the same. He further submits, this aspect was never examined during the original assessment proceedings to any extent and therefore the reason to believe in the form recorded is sufficient to sustain the jurisdiction of the Assessing Officer. We find that for the jurisdiction under Section 147 of the Act to arise, there must exist necessary material or information on the basis of which a reason may arise to any prudent person in the situation of the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 147/148 of the Income Tax Act, 1961. Therefore, I have reason to believe that income of ₹ 35,00,000/- has escaped from assessment for A.Y. 2010-11. Thus, I am satisfied that the provision of Section 147 of the Income Tax Act, 1961 is applicable in this case. Issue notice under Section 148 of the I.T. Act, 1961. Learned counsel for the petitioner further submits, the objection as raised has not been dealt with and decided by the Assessing Officer. From a perusal of the order passed on the objections filed by the petitioner, we find that he has first referred to the information received by him and then relied on the material received from the Investigation Wing of the revenue which is specific. Then while it may be true t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, is the Investigation report of the DIT. Nothing from that report is set out to enable the reader to appreciate how the conclusions flow therefrom. In the first place, it is noted that the aforesaid decision of the Delhi High court arises from a regular appeal filed under Section 260 A of the Act. Then, in that case, the reassessment order had been made wherein addition had been made on account of certain accommodation entry having been alleged by the revenue. The said reassessment order was challenged by way of statutory appeal filed under the Act. It is in such appeal that the Income Tax Tribunal, after examining the entire facts reached the conclusion that other than the mere allegation made by the assessing officer of the entry i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave reason to believe that an income of ₹ 5,00,000/- has escaped assessment in the AY 1004-05 due to 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 under Section 148 of the Income Tax Act, 1961. In this case the assessment was made under Section 143(1) not under Section 143(3) of the IT Act, 1961. I am therefore, satisfied that the said income, on account of accommodation entry worth ₹ 5,00,000/- received by the Assessee has escaped assessment and accordingly after recording the above said reasons as laid down under the provisions of Section 148 (2) of the Income Tax Act, 1961 u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shown as a creditor in books of account of the assessee has himself denied the genuineness of that entry. Prima facie, therefore, there is both material as also a reason to believe that the said entries are accommodation entries. In that view of the matter, we find that the jurisdiction appears to have been validly exercised by the Assessing Officer. However, the observations made by us are only confined to the issue whether the jurisdiction to initiate reassessment proceeding had validly arisen against the petitioner for the Assessment Year 2010-11. No part of the observation made would be relevant to the merits of the dispute i.e. whether an addition on the above count is warranted in the entirety of the facts and circumstances of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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