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TMI Blog2022 (5) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing Officer to undertake a fresh exercise for the purpose of looking into and understanding the objections raised by the writ applicant. We are of the view that the writ applicant should be given an opportunity to even meet with what has been pointed today to us by Mr. Bhatt i.e. the transactions between M/s. Siddhi Cooperative Bank Limited, Mili Corporation and also Yashoda Enterprises and in turn with Shimmer Exim Private Limited and in turn the transactions with Shimmer Exim Private Limited undertook with the ICICI Bank Limited. If what has been pointed out by the Revenue is also to be considered as a part of the reasons, then the writ applicant must be afforded an opportunity to offer its explanation. We are not asking the Assessing Officer to furnish fresh set of reasons. Mr. Soparkar has been able to understand what has been conveyed to us by Mr. Bhatt. We leave it for the writ applicant to raise its objections even with regard to the three documents, which have been placed on record. We quash and set aside the order passed by the Assessing Officer disposing of the objections. We remit the matter to the Assessing Officer for fresh consideration of all the objections, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the above notice issued under Section 148 of the Act to M/s. Siddhi Cooperative Bank Limited, which is a subject matter of challenge in the present writ application. 2.5 On 29.03.2022, this Court passed the following order: 1. We have heard Mr. B.S. Soparkar, the learned counsel appearing for the writ applicant. 2. Having regard to the peculiar facts of this case, we want Mr. M.R.Bhatt, the learned senior counsel appearing for the Revenue to look into the writ application, take appropriate instructions in the matter and revert tomorrow, i.e, on 30th March, 2022. The allegations levelled in the reasons are quite serious. However, at the same time, the principal contention raised on behalf of the writ applicant Bank is that none of the twelve entities named at Page-24 of the paper-book are having any accounts with the Bank. While lodging the objections to the reasons, the writ applicant Bank has specifically said that the twelve entities identified for the purpose of inquiry are not having any account with the assessee Bank. 3. We have also gone through the order disposing of the objections. We do not find a word of discussion on this issue. Still we want Mr. Bh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... According to the Assessing Officer, M/s. Siddhi Cooperative Bank Limited being a Cooperative Bank could not have undertaken foreign outward remittances for the above 12 parties. The analysis of the information as indicated in the reasons read thus: As per the information received from DDIT(Inv.) Unit -2, Surat, it is seen that the following 12 companies managed by Afroze Hassan Fatta and his accomplices had made huge foreign remittances to foreign entities based in Dubai and Honk Kong on strength of fake bill of entries in lieu of import payments for diamonds from these foreign based entities. Party Name Agni Gems Pvt. Ltd. Aunik Diamond Pvt. Ltd. BajrangDaim Pvt. Ltd. Hem Jewels Pvt. Ltd. Jaime Exim Pvt. Ltd MaaMumbadevi Gems Pvt. Ltd. MB Offshore Distributors Pvt. Ltd. R.A. Distributors Pvt. Ltd. Ramshyam Exports Pvt. Ltd. Renuka Exim Pvt. Ltd. Riddhi Exim Pvt. Ltd. Shimmer Exim Pvt. Ltd. These 12 companies in turn had received funds from multitude of other companies/ entities through multiple bank accounts. A fund trail was identified the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otal 18,97,79,520 From the above, it is found that no real business is being carried out by the assessee. Therefore, all the transactions carried on by the assessee are also mere paper transactions where no real exchange of goods or service have taken place. The transactions undertaken by various beneficiaries are sham transactions reflected in their books of accounts for the purpose of tax evasion. 2.9 We also quote paras 4,5,6 and of the reasons as under: 4. Enquiries made by the AO as sequel to information collected / received: In this case, specific information has been received from the Investigation Wing clearly outlining the systematic evasion of taxes by the assessee. The facts as enumerated above have been found out on examination on the case records of the assessee and are self explanatory. Therefore, no further enquiry is required in this case. On the basis of the same, there are reason to believe that the income chargeable to tax has escaped assessment. 5. Findings of the AO: After analysis of the information with the facts available on record, it can be concluded that the transaction of RS.18.98 crore done by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to disclose fully and truly all necessary facts during assessment proceedings. For aforesaid reasons, it is not a case of change of opinion by the A.O. It is evident from the above facts as mentioned in the para 3 5, that the assessed had not truly and fully disclosed material facts necessary for his assessment for the year under consideration On the basis of the above, I have reason to believe that income of the assessee to extent of Rs.18,97,79,520/- has escaped assessment for the year under consideration. Therefore, I am satisfied that it is a fit case for initiating proceedings u/s. 147 of the Act. 2.10 Thus, from the aforesaid, the Assessing Officer has come to the conclusion that he has reason to believe that the income of the assessee to the extent of Rs.18,97,79,520/- has escaped assessment for the year under consideration. 2.11 To the aforesaid reasons, the writ applicant lodged its objections dated 23.06.2021. In the objections, two things have been highlighted as under: 2.2 Please note that assesse is not having license to deal with foreign remittances; so assessee bank on its own cannot make any foreign remittance. Further also no Foreign Remittances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Mili Corporation and Yashoda Enterprises respectively. According to Mr. Bhatt, Mili Corporation and Yashoda Enterprises in turn transferred the amount to one Shimmer Exim Private Limited. The Shimmer Exim Private Limited in turn is said to have transferred the amount to various foreign countries through the ICICI Bank Limited. This is what Mr. Bhatt has to explain as regards the transactions for which the Assessing Officer proposes to reopen the assessment for the A.Y. 2014-15. 7. The first and the foremost thing we take notice of is that whatever has been explained by Mr. Bhatt on the basis of the three documents does not figure in the reasons assigned by the Assessing Officer. Therefore, in such circumstances, the writ applicant could be said to have had no opportunity to offer its explanation as regards the transactions which Mr. Bhatt is talking about. The reasons assigned by the Assessing Officer are altogether on a different footing. The writ applicant in its own way has tried to explain while putting forward its objections, however, we do not find any meaningful discussion in the order disposing of the objections. In fact, none of the objections raised by the writ appli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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