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TMI Blog2018 (5) TMI 1540X X X X Extracts X X X X X X X X Extracts X X X X ..... ered into by the assessee have not been specified and that the reasons were recorded without any application of mind, merely on the basis of information received from the Investigation Wing of the Department, i.e., just on borrowed satisfaction. - Decided in favour of assessee. - I.T.A No. 250/Agra/2016 - - - Dated:- 23-5-2018 - Shri A. D. Jain, Judicial Member Assessee by : Shri Deependra Mohan, AR. Revenue by : Shri Waseem Arshad, Sr.DR. ORDER This is assessee s appeal for assessment year 1999-00, taking the following grounds: 01. That the reassessment proceedings are arbitrary, wrong, illegal, bad on facts and contrary to the provisions of law and the assessee denies his liability to be assessed u/s 143(3) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e escapement of income: It has gathered that the above mentioned assessee has taken gift from the following party during the financial year: M/S Garg Enterprises Trust of ₹ 2,00,000/- on 23-2-99. An Information has been received from the Income Tax Officer-4(l), Agra vide his letter F.No.I.T.O 4(l)/Agra/148/2005-06 dated 22.03,2006 which has been forwarded by the Joint Commissioner of Income Tax. Range-1, Agra vide his letter F.No. LTCG/J.C.I.T/Rl/ AGRA/05-06 dated 23.03.2006. On enquiry it has been found that the transaction of receipt of gift by the trust and gift made by the trust to unknown persons are bogus and ungenuineness. The trust created arrange gift for donees and received certain commission from donees. The tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as received that an amount of ₹ 2,00,000/- has been received by the assesses on 23.02.1999 in her bank account. It was also informed that these are managed entries with a view to form capital. In view of this specific information, AO recorded his reasons for reopening the case, as it was noticed that amount of ₹ 2,00,000/- was received by the assessee. In view of this specific information received regarding deposit in the bank account, AO is correct in forming a view that the income has escaped assessment. Hence the reopening of the assessment is held valid. This ground of the assessee is therefore dismissed. 6. The ld. Counsel for the assessee has contended that in the reasons recorded for the year under consideration, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T vs. Active Traders (P.) Ltd. , 214 ITR 583 (Calcutta High Court). 5. M/s Pragati Financial Management Pvt. Ltd. Vs. The CIT-II , ITA 178 of 2016, GA 997 of 2016 (Calcutta High Court). 6. Anil Kumar Singhal vs. ITO , IT Appeal Nos. 408 413/Agr/2012, ITAT Agra. 7. Acorus Unitech Wireless Pvt. Ltd. Vs. ACIT , Judgment dated 28.02.2014, passed by the Hon ble Delhi High Court in WP (C) 1957/2013. 8. The question is as to whether or not in the facts and circumstances of the present case, the reasons for belief of escapement of income were recorded by the AO without application of mind, merely on the information received from the Investigation Wing of the Department. 9. As per the reasons recorded, it has been foun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nable. 11. In the present case, like in Meenakshi Overseas (supra), the link between the information available with the AO and the formation of belief by the AO is missing. No independent application of mind by the AO to the material forming the basis of the reasons recorded is evincible from the reasons. The AO, in the reasons, has just stated the information received and his conclusion about the alleged escapement of income. As to what the AO did with the information made available to him, is not discernible from the reasons. As such, Meenakshi Overseas (supra), is squarely applicable. 12. Meenakshi Overseas (supra) is by the Hon ble Delhi High Court, whereas the decisions cited by the ld. DR are from other different High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as having no merit. 13. In the case at hand, however, the issue raised is altogether different. Here, the challenge of the assessee is that since in the reasons recorded, the AO has not spelt out as to what he did with the information received by him from the Investigation Wing, the reasons are hit by the vice of non-application of mind to the information so received. 14. From the above, it is evident that there is no parity whatsoever between Brij Mohan Agarwal (supra) and the present case. Accordingly, Brij Mohan Agarwal (supra) is of no help to the Department. 15. Hosang R. Debra vs. ITO (supra) by the coordinate Bench is of no relevance. In that case, the ground concerning reopening was withdrawn. 16. Reliance by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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