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TMI Blog2018 (4) TMI 1558X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the assessee in the information unearthed by the Income-tax Department in respect of the huge money laundering mechanism. All these things, according to us, do not inspire any confidence in our mind to hold that the learned AO has reached any conscious decision that any income of the assessee has escaped assessment and the modus operandi thereof. While respectfully following the decision of the coordinate bench of the Tribunal in MRY Auto Components Ltd. (2017 (9) TMI 966 - ITAT DELHI) hold that the satisfaction of the learned AO is not based on any sound reasoning and on that ground, we hold that the reopening of assessment is bad. Allow the appeal of the assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... fore us in appeal. 4. It is the argument on behalf of the assessee that in this matter there is no independent application of mind by the learned AO to the report of the Investigation wing to form the basis for reason to believe that income has escaped assessment inasmuch as the information per se does not amount to any tangible material incriminating the assessee. Nextly, it is contended that when the reason to believe speak only about ₹ 15 lacs, learned AO proceeded to make an addition of ₹ 2.15 crores which shows the non application of amount on the part of the ld AO. Lastly, it is submitted that while placing reliance on the decision reported in the case of Bharat Jayant Patel vs UOI (2015) 378 ITR 596 (Bom), it is submitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmissions on either side. The reasons recorded by the learned AO are as follows: " T h e investigating wing of the income Tax Department had unearthed a huge money laundering mechanism wherein it was established that bogus accommodation entries were provided/taken these accommodation entries received in lieu of payment of cash of equivalent amount plus commission thereon to the entry operators. For obvious reasons, these cash transactions are not routed through the books of account of the assessee. in this case, information has been received from the Directorate of Income Tax, (Investigation), New Delhi that during the relevant assessment year, this assessee had received the following cheque amount(s) in nature of accommodation entry: Va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant assessment year, this assessee had received the following cheque amount(s) in nature of accommodation entry: Value of entry taken Date on which entry taken Name of account holder of entry given account Bank from which entry given BRANCH OF ENTRY GIVEING BANK a`/c NO. OF ENTRY GIVING A/C 300375 13.3.2003 Rahul Finlease SB,Patiala Daryaganj 50082 300315 26.3.2003 Kuldeep Textile SBBJ NRR 24624 400415 27.3.2003 Division Trading SBBJ 2NRR 24620 Therefore, I have reason to believe that an income of ₹ 10,01,105/- plus commission @ 2% thereon amounting to ₹ 20,022/- , totaling to ₹ 10,21,127/- has escaped assessment during the assessment year. O n t h e basis of this information, I have reaso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich reads as follows: " Although in S.K. Jain and V.K. Jain group search and survey operations u/s 132/133A were carried out on 14.9.2010 and the report of the investigation wing was circulated vide their letter dated 12.3.2013 and the Investigation Wing in their report covered the period of assessment year 2005-06 to 2011-12 although this group was involved in providing accommodation entries nprior to asstt. Year 2001-02. The time limit of taking action u/s 147 for asstt. Years 2004-05 was 31.3.2011. Hence, the Investigation Wing had not analyzed the transaction of accommodation entries prior to asstt. Year 2005-06." 11. This clearly shows that the Investigation Wing had not analyzed the transaction of the accommodation entries prior ..... X X X X Extracts X X X X X X X X Extracts X X X X
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