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TMI Blog2018 (8) TMI 652X X X X Extracts X X X X X X X X Extracts X X X X ..... which was necessary to ascertain, if there has been any escapement of income. - Reopening of assessment confirmed - Decided against the assessee. Enhancement of income by the CIT(A) in appellate proceedings - CIT (A) has in a way enhanced addition by charging 2% commission for providing accommodation entries to assessee. - Held that:- It is observed that assessee was not given any notice of enhancement by Ld.CIT (A), thereby not following due process of law, as per section 251 of the Act. We are therefore inclined to delete addition made by Ld.CIT (A) to of 2% as commission for providing accommodation entry to assessee. Decided in favor of assessee partly. - ITA No. 2405/Del/2015 - - - Dated:- 8-8-2018 - SH. N. K. BILLAIYA , ACCOU ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry companies. This fact was confirmed in scrutiny assessment of group concerns. During scrutiny assessment of group concerns, it was revealed that assessee has taken accommodation entries from SK Gupta group of cases in the shape of bogus bills of expenditure of printing and stationery. Details gathered during search formed the basis for reopening of assessment for year under consideration in case of assessee. A show cause notice was issued requiring assessee to explain why an amount of ₹ 68,87,460/- should not be considered as bogus expenses. 3. After considering submissions of assessee, Ld.AO examined repetition of certain bills that was alleged by assessee and after removing repetitive entries, details of bills actually procur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s in the garb of bogus claim of expenditures, the income has escaped assessment within the meaning of section 147 of the Act. Notice u/s 148 was issued after recording proper reasons as per requirement of law. Therefore, reopening was based on a reasonable belief. The information was specific to the extent that it contained the name of the assessee as a beneficiary, name of entry providers, bill., date amount. Any reasonable person shall make a belief that income has escaped assessment. Therefore, there was sufficient material which is sufficient to make reason to believe for initiating the provisions u/s 147. There was a rational connection between the information received and escapement of the income. There is a live link between the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eived from the investigation wing was specific. The information was sufficient for making a belief that income amounting to ₹ 58,87,460/- chargeable to tax has escaped assessment within the meaning of section 147 of the Act and the Assessing Officer was justified in initiating the proceedings for reassessment by issuing notice u/s 148 after recording the reasons as required by law. In view of the above as the proceedings u/s 147 have been initiated and assessment was made u/s 147/143(3) as per the provision of the I.T.Act, therefore, no infirmity have been caused by the A.O. Therefore, appeal fails in ground no. 1 of appeal. 6. On the issue of addition made by Ld.A.O. by holding expenses to the tune of ₹ 30,87,460/- as b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment, within the meaning of section 147 of the Act. He submitted that information was very specific to the extent that it contained the name of assessee as a beneficiary, name of entry provider, Bill number, date and amount. Ld.Sr.DR, thus, submitted that these were sufficient materials to make reason to believe for initiating provisions under section 147. He submitted that there is also a live link between material that came to the notice of Ld.AO, and information of belief that income has escaped assessment since there was no assessment under section 143 (3) for the year under consideration. The Ld.Sr.DR submitted that initiation of proceedings under section 147 on existence of a prima faci belief, based upon specific information regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided by S.K. Gupta group was unearthed during search operation carried out by investigating wing, wherein assessee was also held to have taken accommodation entries in the nature of sales/expenses bills. These entities being group concern of escape group, group who has provided bogus bills to assessee has not been maintaining proper books of accounts, sales and purchases, expense vouchers etc., and therefore their books were rejected under section 145 (3) of the Act. Ld.Sr.DR submitted that they have also failed to establish genuine business being carried out other than accommodation entry business. He thus submitted that under such circumstances assessee having failed to have established the transaction to be genuine in nature assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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