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TMI Blog2019 (3) TMI 394X X X X Extracts X X X X X X X X Extracts X X X X ..... Order granting the sanction records that the funds of public limited company are being siphoned of to the private limited companies. This is not evident at all from the reasons recorded which makes references only to Private Limited companies being used as vehicles for providing accounting entries by the Himanshu Verma group. Thus, on the face of it, the sanction granted is bad in law. Grant of the sanction by the CIT under Section 151 of the Act, is not a mechanical act on his part but it requires due application of mind to the reasons recorded before granting the sanction. This has been so provided as to safeguard against issue of reopening notice (which seek to disturb the settled position) to ensure that assessee is not troubled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3) of the Income Tax Act, 1961 on 23.03.2014 and income assessed of ₹ 1,75,61,370/ . 02. In the instant case, the information received from Assistant Director of Income tax (Inv), unit 6(3), New Delhi which are as follows: This unit had conducted search in case of Himanshu Verma Group on 29.03.2012. This group was centralised with the Assessing Officer of Central Circle 20, Delhi (ACIT, Central Circle 20, Delhi.) 2. Shri Himanshu Verma was engaged in the activities of providing accommodation entries to various beneficiaries group. He did this by incorporation of numerous corporate and non-corporate entities where directors/partners/proprietors were his employees and closed associates. 3. Modus operandi of Sh. Hima ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shu Verma Group Company MY CAR PUNE PRIVATE LIMITED AAECM2713M Citylife Promoters Pvt. Ltd. 6000000 MY CAR PUNE PRIVATE LIMITED AAECM2713M Care well Projects Development Pvt. Ltd. 2000000 MY CAR PUNE PRIVATE LIMITED AAECM2713M Cornelius Marketing Research Pvt. Ltd. 5500000 MY CAR PUNE PRIVATE LIMITED AAECM2713M Gyanda Exim Pvt. Ltd. 3000000 MY CAR PUNE PRIVATE LIMITED AAEC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee has filed a copy of annual report, P L a/c, balance sheet alongwith return of income where various information/material were disclosed. However, the requisite full and true disclosure of material facts for necessary for assessment has not been made as noted above. It is pertinent to mention here that even though the assessee has produced annual report, P L a/c, balance sheet alongwith return of income as mentioned above, the requisite material facts as noted above in the reasons for reopening were embedded in such a manner that material evidences could not be discovered by the AO and could have been discovered with due diligence, according provisions of explanation 1 of section 147 of the Income Tax Act, 1961. (iii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the information in his possession. It is noted that the assessee had heavy transaction (was providing accommodation entries to various beneficiary groups amounting to ₹ 5,42,00,000/ , siphoning off fund from Public Ltd. Co. to Pvt. Ltd. Co., inflation of beneficiaries purchases) during the relevant financial year. The assessee has filed the return of income declaring total income of ₹ 1,56,64,480/ but all the above activities need to be verified. Therefore, I am also satisfied that income has escaped assessment in this case. Hence, the approval u/s 151(1) of the Income tax Act is being accorded for Issue of Notice u/s 147 r.w.s. 148 of the Income tax Act. Dated 31/03/2018 (Ashok Kumar Pandey) Pr.Commissioner of Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. This is not evident at all from the reasons recorded which makes references only to Private Limited companies being used as vehicles for providing accounting entries by the Himanshu Verma group. Thus, on the face of it, the sanction granted is bad in law. It is a settled position in law that grant of the sanction by the Commissioner of Income Tax under Section 151 of the Act, is not a mechanical act on his part but it requires due application of mind to the reasons recorded before granting the sanction. This has been so provided as to safeguard against issue of reopening notice (which seek to disturb the settled position) to ensure that assessee is not troubled with reopening issues without satisfactory reasons. Therefore, it must pass m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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