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TMI Blog2019 (8) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,000, rather it is a case of zero investigation. It is one thing to state that the above documents were available but an entirely different thing to state that on examining those documents the AO found the live link for forming the reason to believe that the sum added had escaped assessment. It must be recalled that these were re-assessment proceedings and not at the stage where it was enough to form a prima facie view for re-opening the assessment. In the re-assessment proceedings the AO was expected to undertake a full-fledged inquiry into the documents produced before him to come to the conclusion that the addition sought to be made was justified. As pointed out by the ITAT or that the AO seems to have done is to simply borrow th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fter procuring commodities locally from India. 5. After the Iraq War of 1991, the United Nations had approved a relief programme by the name of UN Oil for Food Programme ( UNOF Programme ) which involved opening of a UN controlled Escrow account. Into the Escrow Account, sales receipts of proceeds by the State Oil Marketing Organization (SOMO) of Iraq were to be deposited and from that account payments were to be made for civil supplies to Iraq. 6. In the original return filed by the Assessee on 31st March, 2003 he declared a net income of ₹ 43,130/- which included income from house property at ₹ 19,130/- and income from other sources at ₹ 24,000/. Only an intimation was sent in respect of this return un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that a sum of Rs. US$ 62,000/- was paid by M/s Masefield AG to the account of the Assessee on 5th March, 2001 in the Jordan National Bank on account of commission for sale of Iraqi Oil to Masefield A.G. sale of oil was deducted. On the basis that this amount of 62,000 US$ was not disclosed by the Assessee in his return of income and notice was issued to him under Section 148 of the Act on 26th March, 2008. This amount was characterised as the bribe paid to Jordan from his account to officials in the Iraqi Regime and therefore this was held not to be allowed as deduction. 9. The objections raised by the Assessee against the re-opening were rejected by the AO. In the re-assessment proceedings an order was passed on 22nd December, 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled a Writ Petition No.13559 of 2009 in the Hon'ble High Court of Delhi, copy of order available at pages 33 to 39 of the paper book, seeking direction to the Directorate of Income tax to supply copies of documents pertaining to the alleged transfer of US $ 62,000 in the account of assessee before proceeding further. Deciding the writ petition in favour of the assessee, the Hon'ble High Court directed the Department to furnish the copies of the documents relied upon. But those documents have not been seen by AO nor CIT (A), nor the same have been supplied to the assessee, but AO on the basis of assumption has taken the letter received from Enforcement Directorate as a gospel truth and made addition thereof. 14. AO on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iaries for a premium. As per the procedure adopted by the Government of Iraq, before the allocation of oil was given to beneficiaries, a letter from the non-contractual beneficiary had to be written to SOMO indicating the person to whom the Oil Ministry should extend its cooperation and assistance in completing the oil transaction. Letters written by Sh. K Natwar to various Iraqi Oil Ministers revealed that he recommended Sh. Andaleeb Sehgal's name for this purpose. These letters, dated 30.01.2001, 26.04.2001 and 16.08.2001, were seized by the ED as evidence. f. While the company to lift oil was being finalized, Sh. Andaleeb Sehgal in his letter dated 25.01.2001 to Mr. Adnan Ameen, Manager SOMO confirmed that he would be prov ..... X X X X Extracts X X X X X X X X Extracts X X X X
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