9911796707
TMI Blog2019 (9) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... and on fact inasmuch as requisite conditions for re-opening were not satisfied. 2. The Id.C.IT.(Appeals) has erred in law and on facts in not quashing and holding the reassessment order as invalid inasmuch as the reassessment order passed was without assuming proper jurisdiction and being based on change of opinion and borrowed satisfaction. 3. He has erred in law and on facts in not appreciating properly the objections to reassessment proceedings made before A.O. by submission dated 21/10/2016 along with relevant evidence including affidavit of Praveenkumar Jain retracting the confession alleged to have been made by him whereby the order got legally vitiated. 4. He has erred in law and on facts in upholding addition of Rs. 2.90 cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the bogus concern. 3. On the other hand assessee's contention that the assessee has stated that neither statement of Shri P.K. Jain was supplied nor any chance to cross examination was granted by the A.O. But ld. A.R. was not agreed with the contention of the assessee and made addition of Rs. 2.90 crore. 4. Against the said order, assessee preferred first statutory appeal before the ld. CIT(A) and before him, assessee took the plea that statement of Shri P.K. Jain has not been supplied to him despite of the fact that he made the request to the ld. A.O but to no avail and ld. CIT(A) confirmed the action of the A.O. 5. We have gone through the relevant record and impugned order. The lower authorities have made addition on the basis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons to believe' were not in fact reasons but only conclusions, one after other-Expression 'accommodation entry' was used to describe information set out without explaining basis for arriving at such conclusion-Statement that said entry was given to Assessee on his paying "unaccounted cash" was another conclusion basis for which was not disclosed-Thus, crucial link between information made available to AO and formation of belief was absent-Court was not inclined to interfere in above circumstances in exercise of its writ jurisdiction to quash proceedings-Careful perusal of reasons revealed that AO did not merely reproduce information but takes effort of revealing what was contained in investigation report specific to Assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urce) - Assessment years 2009-10 to 2011-12 - For relevant assessment years, assessee filed its returns declaring certain taxable income -Returns were processed under section 143(1) - Subsequently, on basis of information received from DGIT (Inv.) that assessee made bogus purchases and to said extent income had escaped assessment from tax, Assessing Officer issued notice under section 148 seeking to reopen, assessment - Assessee's objections to reopening of assessment were set aside - Whether., since formation of belief of Assessing Officer was not based upon details available on record, rather on basis of information supplied by DGIT (Inv.) i.e. an external source, it could not be concluded that requirements of section 147 were satisfi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d order is a serious flaw which makes the order nullity inasmuch as it amounted to violation of principles of natural justice because of which the assessee was adversely affected. It is to be borne in mind that the order of tire Commissioner was based upon the statements given by the aforesaid two witnesses. Even when the assessee disputed the correctness of the statements and wanted ITA No.726/Ahd/2017 Shantaben Parasmal jain vs. DCIT 2010-11 to cross-examine, the Adjudicating Authority did not grant this opportunity to the assessee. It would be pertinent to note that in the impugned order passed by the Adjudicating Authority he has specifically mentioned that such an opportunity was sought by the assessee. However, no such opportunity was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e back to the Tribunal with the directions to decide the appeal on merits giving its reasons for accepting or rejecting the submissions. In view the above, we are of the opinion that if the testimony of these two witnesses is discredited, there was no material with the Department on the basis of which it could justify its action, as the statement of the aforesaid two witnesses was the only basis of issuing the Show Cause We, thus, set aside the impugned order as passed In the Tribunal and allow this appeal." 9. Since statement of Shri P.K. Jain was not supplied to the assessee on the basis of addition was made and in the absence of said statement assessee could not cross examine to Shri P.K. Jain and same is amount to miscarriage of ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
