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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 ..... 002. 3. The question sought to be urged by the Revenue is whether the ITAT erred in holding the re-opening of the assessment under Section 147 of the Act for AY in question to be bad in law? 4. The facts in brief are that the Assessee is a partner in M/s Hamdaan Export, New Delhi engaged in export of various commodities like food grains, medicine etc. It is stated that exports were primarily made to Russia and UK after 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 Or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rdan and certain letters issued by Embassy of India in Baghdad to various offices of the Iraqi Government, etc." 8. The ED issued a show cause notice dated 2nd September, 2006 to the Assessee enclosing the aforementioned documents. According to the ED a reference had been received from the Investigation Wing on 17th March, 2008 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 amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n no such document has been placed before the Bench, it is proved that the AO has not made any independent enquiry by collecting necessary documents but merely based his findings on the basis of letter received from Enforcement Directorate. 13. Not only this, assessee even filed 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 relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... olled by the UN. There was a difference in the price between what was permitted to the Iraqis (and fixed by the UN) and the prevalent market price. Therefore, the Iraqis had started offering Oil Contracts to non-contracting beneficiaries 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, 26.04.200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 the conclusions drawn by the ED without making any independent inquiry himself into the matter. Even before the ITAT, the Revenue was unable to show the precise documents or material on the basis of which the AO formed the reason to believe that 60,000 US$ had been paid as bribe to the Iraqi officials and therefore was required to be added to the income of the Assessee. 15. Consequently, the Court is unable to find any perversity in the impugned order of the ITAT allowing the appeal of the Assessee. No substantial question of law arises. The appeal is dismissed.< ..... X X X X Extracts X X X X X X X X Extracts X X X X
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