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TMI Blog2016 (3) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 143(2) was issued and served and in response thereto assessee's authorized representative attended the assessment proceedings and during the assessment proceedings AO noticed that the accommodation entries are of ₹ 11,10,000/- and not of ₹ 2,00,000/- as mentioned in the reasons recorded. He further noticed that assessee has raised share application money / share capital from various companies/ parties. The assessee companies furnished the required details in respect of share application / share capital raised during the year. Thereafter, the AO held that in terms of section 68 the burden is on the assessee to offer a satisfactory explanation about the nature and source of amount found credited in the books of the assessee and it was further held that it is clear that mere furnishing of particulars is not enough. AO observed that since the assessee has failed to do so in submitting the information called for and has also failed to discharge his onus to produce the parties/ persons, a sum of ₹ 11,10,000/- in respect of share application money/ share capital, and he added the same to the income of the assessee u/s. 68 of the Act and also added ₹ 27,750/- b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E/258 at 16/6/2006 that the above said company have received accommodation entries as above:- Rs.l00000/- on 31.03.2002 from M/s. Rabik Exports Limited Through Corporation Bank Paschim Vihar A/c No.-52199. ₹ 100000/- on 31.03.2002 from Mis. Shashi Sales & Marketing Pvt. Limited Through Corporation Bank Paschim Vihar A/c No.-52351. In reality these accommodation represent the assessee own unaccounted money. The Assessment in this case was completed u/s 143(1) on 27.01.2003. These entries are not shown in the return of income filed on 31 October, 02. In view of the above I have reasons of believe that the income of ₹ 200000/- has escaped assessment for the A. Year 2002-03. Therefore the case is reopened u/s 147 of the Income Tax act for the assessment year 2002-2003. Sd/- Income Tax Officer W-17(1) New Delhi" 8.1 For the sake of clarity, we are also reproducing herewith the para no. 4 of the impugned order dated 29.10.2012 at page no. 5 wherein Ld. CIT(A) has discussed the issue of challenging the reopening of assessment u/s. 147 of the Act. "4.1 Ground no. 2 challenges the reopening of assessment u/s 147. In the assessment er, the AO. has stated as follo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3, from four entities which were termed as accommodation entries, which information was given to him by the Directorate of Investigation, the AO stated: "I have also perused various materials and report from Investigation Wing and on that basis it is evident that the assessee company has introduced its own unaccounted money in its bank account by way of above accommodation entries." The above conclusion is unhelpful in understanding whether the AO applied his mind to the materials that he talks about particularly since he did not describe what those materials were. Once the date on which the so called accommodation entries were provided is known, it would not have been difficult for the AO, if he had in fact undertaken the exercise, to make a reference to the manner in which those very entries were provided in the accounts of the Assessee, which must have been tendered along with the return, which was filed on 14th November 2004 and was processed under Section 143(3) of the Act. Without forming a prima facie opinion, on the basis of such material, it was not possible for the AO to have simply concluded: "it is evident that the assessee company has introduced its own ..... X X X X Extracts X X X X X X X X Extracts X X X X
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