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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 ..... peration of the notice dated 30.03.2021 at Annexure - 'A' to this petition and stay further proceedings for the A.Y. 2014-15. c. any other and further relief deemed just and proper be granted in the interest of justice; d. to provide for the cost of this petition." 2. The fact giving rise to this writ application may be summarized as under: 2.1 The writ applicant is a Multi-State Scheduled Cooperative Bank. We take notice of the fact that one M/s. Siddhi Cooperative Bank Limited figures in this litigation. For the A.Y. 2014-15, M/s. Siddhi Cooperative Bank Limited had filed its return of income on 30.09.2014 at Rs.10,37,230/-. The case was selected for scrutiny and the assessment order under Section 143(3) of the Income Tax Act, 1961 (for short "the Act, 1961") was passed on 27.09.2016. 2.2 It appears from the materials on record that M/s. Siddhi Cooperative Bank Limited got merged with the writ applicant bank w.e.f. 09.04.2019. 2.3 The writ applicant bank is in receipt of a notice issued by the respondent under Section 148 of the Act seeking to reopen the assessment in the case of M/s. Siddhi Cooperative Bank Limited for the A.Y. 2014-15. 2.4 It is the above notice issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .04.2022. 4. Let there be an ad-interim order in terms of paragraph 7(b). 5. On the returnable date, notify this matter on top of the Board." 2.7 The sum and substance of the impugned notice issued under Section 148 of the Act is that the respondent is in receipt of an information from the DDIT (Inv.) Unit-2, Surat, that at the relevant point of time, M/s. Siddhi Cooperative Bank Limited had transmitted huge amount to various foreign countries. In the reasons assigned by the Assessing Officer, we find names of 12 parties involved in the transactions. The 12 parties allegedly involved and identified in the transactions during the period between 2009 and 2016 are as under: * BajrangDaim Pvt. Ltd. - T2.8 * Agni Gems Pvt. Ltd. - T2.1 * Hem Jewels Pvt. Ltd. - T2.2 * MB Offshore Distributors Pvt. Ltd. - T2.3 * MaaMumbadevi Gems Pvt. Ltd. - T2.4 * R.A. Distributors Pvt. Ltd. - T2.5 * Ramshyam Exports Pvt. Ltd. - T2.6 * Riddhi Exim Pvt. Ltd. - T2.7 Renuka Exim Pvt. Ltd. T2.9 * Shimmer Exim Pvt. Ltd. T2.10 * Aunik Diamond Pvt. Ltd. - T2.11 * Jaime Exim Pvt. Ltd. - T2.12 2.8 According to the Assessing Officer, M/s. Siddhi Cooperative Bank Limited being a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Distributors Pvt. Ltd. T2.5 5,26,04,840 Ramshyam Exports Pvt.Ltd.-T.26 87,00,000 Riddhi Exim Pvt. Ltd. - T2.7 5,99,34,840 Shimmer Exim Pvt. Ltd.T2.10 78,10,000 Total 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 inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 are made by the Assessee Bank during the year for any of its customers/ Account Holders. 2.3 Moreover, 12 (Twelve) entities identified for inquiry purpose are not having any account with assessee bank. Thus the narration made, and reasons recorded does not relate to or pertain to assessee bank." 2.12 Over and above the aforesaid, there are many other objections, which the writ applicant - assessee has raised. The objections came to be disposed of by the Assessing Officer vide order dated 08.11.2021. 2.13 The aforesaid objections came to be overruled by the Assessing Off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis 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 applicant could be said to have been taken into consideration by the Assessing Officer in a meaningful manner. 8. In such circumstances referred to above, we want the Assessing 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 Lim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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