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TMI Blog2018 (5) TMI 1905X X X X Extracts X X X X X X X X Extracts X X X X ..... dication. In the result, the appeal is allowed. - ITA No. 277/Agr/2017 - - - Dated:- 4-5-2018 - Shri A.D. Jain, Judicial Member For the Assessee : Shri Anurag Sinha, Advocate For the Revenue : Shri Waseem Arshad, Sr. DR ORDER This is assessee s appeal for the assessment year 2002-03. The effective grounds raised are as under : 1. BECAUSE the learned CIT(A) has erred both on facts and in law in upholding the initiation of reassessment proceedings, initiated by the learned ITO-1(2), Agra by taking recourse to the provision of section 147/148 of the Income Tax Act, 1961, despite the fact that there existed No material on his record (at the time of recording reasons) for his reason to believe that the income of the appellant has escaped assessment. 2. BECAUSE the learned CIT(A) has failed to appreciate that the reassessment proceedings as initiated are wholly unsustainable in as much as the same have been initiated for collateral purpose i.e. to make roving and fishing enquiry, as there was no material on record to even prima-facie conclude that the income of the appellant had escaped assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fts etc., which in fact never took place. The assessee is also one of the beneficiaries figuring in the list supplied as sated above and an amount of ₹ 2,21,895/- through Inst. No. 13606 dated 22.02.2002. The said amount is found credited in the bank account of above named assessee maintained in UCO Bank, Belanganj, Agra, which has been remitted to the assessee from M/s. Ayushi Stock Brokers (P) Ltd., Agra. Since the said transaction is found to be bogus and the entire amount of the same claimed to have been received by the assessee by inst./bank draft is the assessee s income from undisclosed sources, which has escaped assessment within the meaning of section 147 of the IT Act, 1961. Hence, I have reason to believe that the above income of ₹ 2,21,895/- has escaped assessment within the meaning of section 147 of the IT Act, 1961. 4. It has been contended on behalf of the assessee that the ld. CIT(A) has wrongly upheld the validity of the reassessment proceedings by observing (page-8 of the order under appeal) that the said proceedings have been initiated undisputedly on the receipt of information from the Investigation Wing, Agra and this fact has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 CM No.2447/2012 (Delhi High Court). 2. Brij Mohan Agarwal vs. Asstt. Commissioner of Income Tax , 268 ITR 400 (Allahabad High Court). 3. Hosang R. Debra vs. ITO-1(2) , ITA No.331/Agr/2012, ITAT, Agra. 4. CIT 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. 6. 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. 7. As per the reasons, according to the information received from the Investigation Wing, in enquiry made by the Investigation Wing in the assessment proceedings of M/s. Ayushi Stock Brokers (P) Ltd., Sanjay Place, Agra, they were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Petition filed by the assessee was decided by the Hon ble High Court on merits, having taken into consideration the investigation report of the Investigation Wing of the Department, as conveyed to the AO, the assessee s record, the Department s counter-affidavit (alongwith its annexures) to the Writ Petition and the rejoinder affidavit filed by the assessee. It was held that from the findings of the Investigation Wing and as per the record, the AO of the assessee (Respondent No.1 in the Writ Petition) had reason to believe that the assessee had diverted and, thus, concealed his income by disclosing it to be sale proceeds of shares, which was not correct, as no real transaction of shares had ever taken place. It was held that in view of the investigation made by the Investigation Wing, relevant and very material facts had come before the AO that the assessee was concealing his income by indulging in bogus transactions. It was, accordingly, held that the belief of the AO was an honest and reasonable belief based on the material which he had received from the Investigation Wing. The Hon ble High Court refused to accept the assessee s contention that it was a case of a mere change of o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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