9911796707
TMI Blog2021 (4) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... of certain information received from credible sources in the case of Sh. Salish Monga. It was revealed that Disha commercial Pvt. Ltd. is having Bank Account No. 03071 101 1004576 with Andhra Bank, Kami Bagh. Delhi. On examination, it is revealed that there is cash credit of Rs. 2.8 crore during Oct-Nov, 2011 followed by back to back transfer of these amounts to various individuals and some entities. It is also revealed that these accounts have cash deposits on regular basis and such funds are subsequently transferred to other entities. It was also observed that these entities have common directors/addresses indicating thereby that all these companies entities belong to same group. M/s. Balbir Investments Pvt. Ltd. is one of such entity. Further examination of bank statements also revealed that there are also fund transfers Iron) other entities. In following entities cash has been deposited which has been further transferred to M/s. Balbir Investments Pvt. Ltd. Entityandaddress as per pass book PAN Account Number Nameand Branch M/s Harvin Exports Pvt. Ltd. 1304. Padmalower-I. Rajindera Place, New Delhi AAACH1744F 603W03011000310 VijayaBank Naraina. Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0,000/- is the amount of bogus accommodation entry entered into by the assessee which is liable to be assessed in the hands of the assessee and has escaped assessment in the assessment year 2009-10. Therefore, it is a fit case for initiating proceedings u/s. 147 of the Act and issue of notice u/s. 148 of the Act." 3. Accordingly, a notice u/s. 148 of the Act was issued to the assessee. The assessee objected to such reopening, which was disposed of by Assessing Officer by passing a speaking order. The Assessing Officer, thereafter, proceeded to complete the assessment. He noted that the assessee has received share capital of Rs. 5,40,000/- from certain paper/briefcase company without any business activity and that their accounts are being used to rotate the funds for accommodation entries of different types to various beneficiaries. He, therefore, asked the assessee to prove the identity and creditworthiness of the share applicant and genuineness of the transaction within the meaning of section 68 of the Act. Since, the assessee failed to substantiate the identity and creditworthiness of the investor company and genuineness of the transaction to his satisfaction the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings suffers from serious and incurable defects which requires orders passed may please be quashed and returned income may be restored. 1.2. That on the facts and in the circumstances of the case and in law, Ld. CIT-A erred in sustaining the order passed by Ld. AO u/s. 147/143(3) without appreciating that "rubber stamp" reasons in present case are based on borrowed satisfaction and are without independent application of mind and even no requisite and appropriate enquiry is made into valid return filed by assessee before formulating purported belief (like issue of enquiry notice to assessee) which so called belief suffers from lack of live nexus and is based on mere pretence only; 1.3. That on the facts and in the circumstances of the case and in law, Ld. CIT-A erred in sustaining the order passed by Ld. AO u/s. 147/143(3) without appreciating that approval of higher authority (although not confronted to assessee) is also without requisite application of mind and is given in mechanical manner as evident from above discussion; 1.4. That on the facts and in the circumstances of the case and in law, Ld. CIT-A erred in sustaining the order passed by Ld. AO u/s. 147/143(3) as none ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring the course of proceedings of assessment or reassessment of escaped income, and which he intends to take into account, he would be required to issue a fresh notice u/s. 148 of the Act. Therefore, in the present circumstances, when the assessee instead of investing any money in G.J. Holdings Ltd. has received an amount of from G.J. Holding Ltd., the Assessing Officer could have issued fresh notice and he could not have proceeded on the basis of non-existent or wrong/erroneous facts for reopening of the assessment. 7. The learned DR, on the other hand, heavily relied on the orders of the Assessing Officer and the CIT(A). He submitted that the Assessing Officer on the basis of information obtained from the Investigation Wing has reopened the assessment. Since, the Investigation Wing is a part of the Department and credible information was obtained, therefore, the assessee cannot say that the reassessment proceedings are not in accordance with law. He, accordingly, submitted that the grounds raised by the assessee on this issue should be dismissed. Further, the assessee could not substantiate the identity and creditworthiness of the investor company and the genuineness of the tra ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
