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TMI Blog2021 (5) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... ee. - Shri Bhavnesh Saini, Judicial Member For the Assessee : Shri Kapil Goel, Advocate For the Revenue : Shri Ved Prakash Mishra, Sr. Dr ORDER This appeal by assessee has been directed against the order of Ld. CIT(Appeals)-37, New Delhi dated 28.06.2019 for AY 2008-09, challenging the reopening of the assessment u/s 147/148 of the Income Tax Act, 1961 and addition of ₹ 25 lakhs and ₹ 45,000/- u/s 68 of the Act. 2. I have heard Ld. Representatives of both the parties and perused the material on record. 3. Briefly the facts of the case are that assessee company filed its return of income on 08.07.2008 for assessment year under appeal declaring income at ₹ 5,340/- which was processed u/s 143(1) of the Act. During the year, company was engaged in business of building and construction. The AO has received information from Director of Income Tax (Investigation-II) dated 12.03.2013 mentioning therein that a search operation was conducted in the case of Shri S.K. Jain group of cases in which the assessee has also found to have received accommodation entry from M/s Nisha Holding Limited ₹ 9 lakhs, M/s Brite Indu Resources Ltd. ₹ 9 lakhs and M/s Finage Leasin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2012-13/194 dated 12/03/2013 during FY 2007-08 M/s Neel Builders Pvt. Ltd. has received total accommodation entries of ₹ 25,00,000/- from the entities managed and controlled by Shri Surender Kumar Jain for providing accommodation entries to the beneficiaries. The details of entry are as under: S.No. Entry Date Particular of entity through whom entry taken Name of the Bank Cheque No. Cheque date Amount 1. 13/07/2007 Nisha Holding Ltd. Kotak 000147 14/07/2007 ₹ 9,00,000/- 2. 13/07/2007 Brite Indu Resources Ltd. Kotak 000271 14/07/2007 ₹ 9,00,000/- 3. 13/07/2007 Finage Lease Finance India Ltd. Kotak 000002 14/07/2007 ₹ 7,00,000/- Total ₹ 25,00,000/- I have perused the information received from the Investigation Wing, New Delhi. The Investigation Wing of the Department has sent comprehensive details comprising inter alia the beneficiary s name, value of entry taken etc. In the aforesaid case return of income was filed on 08/07/2008 declaring income of ₹ 5,340/-. Further, it is noticed that the assessee company M/s Neel Builders Pvt. Ltd. has received accommodation entries to the tune of ₹ 25,00,000/- during the FY 2007-08 relevant to AY 2008-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search and post search enquiries it was established that the said group is involved in providing accommodation entries to various persons whose names were named in the report. The name of the assessee company also appears in the said list as one of the beneficiaries being amount of ₹ 5,50,000/- received by the assessee as share capital money from Finage Lease Finance P. Ltd. The Assessing Officer thereafter reopened the assessment u/s. 147 and notice u/s. 148 was issued to the assessee. In response to the same the assessee submitted that the original return filed on 11.09.2008 may be treated as return filed in response to notice u/s.148. The Assessing Officer issued notice u/s. 133 (6) to Oriental bank of Commerce for copy of account opening form and bank statement from 01.04.2007 to 31.03.2008. He also issued notice u/s. 133 (6) to M/s. Finage Lease Finance P. Ltd. asking for documents regarding its transaction with the assessee. It was replied by the said company that it has given an amount of ₹ 5,50,000/- through cheque No. 000111 dated 24.12.2007 drawn on Kotak Mahindra Bank. The Assessing Officer asked the assessee to produce the Director of above said company. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee during the financial year 2007-08 has received total entries of ₹ 5,50,000/- from the entities managed and controlled by the Sh. Surender Kumar Jain for providing accommodation entries to the beneficiaries. He submitted that in the reasons recorded there is no reference of any tangible material or statement alleging the involvement of the assessee. The nature of the entry whether it is loan or share capital or purchase has not been clearly spelt out in the reasons itself. Thus it is clear that the Assessing Officer has not applied his mind and reasons have been recorded on the basis of borrowed satisfaction. There is no live link or nexus between the information so received and formation of belief by the Assessing Officer for escapement of income. For the above proposition he relied on the following decisions :- 1. Sabh Infrastructure Ltd. Vs. ACIT of Hon ble Delhi High Court 2. Meenakshi Overseas Vs. PCIT ITA No.692/2016 3. Signature Hotels (P) ltd. Vs. ITO of Hon ble Delhi High Court reported in 338 ITR 51 4. CIT Vs. Insecticides India Ltd. of Hon ble Delhi High Court reported in 357 ITR 330 5. CIT Vs. G G Pharma India Ltd. of Hon ble Delhi High Court ITA No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mann.com 409 (Delhi)/[2017] 392 ITR 444 (Delhi). 9. Paramount Communication (P.) Ltd. Vs PCIT Supreme Court 2017-TIQL- 253- SC-IT 10. - Amit Polyprints (P.) Ltd. Vs PCIT Gujarat High Court T20181 94 taxmann.com 393 (Gujarat) 11. Aaspas Multimedia Ltd. Vs PCIT Gujarat High Court T20171 83 taxmann.com 82 (Gujarat) 12. Murlibhai Fatandas Sawlani Vs. ITO Gujarat High Court 2016-TIOL- 370-HC-AHM-IT 13. Ankit Agrochem (P) Ltd. Vs. JCIT Rajasthan High Court [2018] 89 taxmann.com 45 (Rajasthan) 14. Rakesh Gupta Vs. CIT P H High Court [2018] 93 taxman.com 271 (Punjab Haryana) 9. So far as the addition on merit is concerned the Ld. DR relied on the following decisions :- 1. PCIT Vs. NRA Iron Steel (P) Ltd. [2019] 103 taxmann.com 48 (SC) 2. PCIT Vs. NDR Promoters Pvt. Ltd. (2019-TIOL-172-HC-DEL-IT) 10. I have considered the rival arguments made by both the sides, perused the orders of the authorities below and the paper book filed on behalf of the assessee. I have also considered the various decisions cited before me. A perusal of the reasons for reopening of the case for the impugned assessment year, copy of which is placed at paper book page No. 20-21 shows that the reopening was made on th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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