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TMI Blog2022 (6) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... f law contained u/s. 153C of the I.T. Act, which the Ld. CIT(A) has failed to appreciate while passing the appellate orders. 2. That the assessment made u/s. 143(3)/r.w.s. 147 of the I.T. Act is illegal as having no locus standi under the law as the AO has failed to record independent satisfaction and has acted only upon the borrowed information which is not tenable under the law which the Ld. CIT(A) has further failed to appreciate while passing the appellate orders. 3. That the appellant company denies its liability to be assessed at total income of Rs. 1,61,45,000/- as against returned income at Rs. 2,38,100/- and accordingly denies its liability to pay tax, cess and interest demanded thereon. 4. That having regard to the facts and circumstances of the case Ld. AO has erred in law and on facts in framing the impugned assessment order and that too without assuming jurisdiction as per law. 5. That the order passed u/s. 143(3)/r.w.s. 147 of the I.T. Act is further perverse Under the law and to the facts of the case because of not obtaining proper permission from the concerned/competent authority as required u/s. 151 of the Act prior to the issue of notice u/s. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2. No one appeared on behalf of the assessee when the appeal was called for hearing. It is seen from the record that from the various dates of hearing, no one has attended the proceedings on behalf of the assessee. The assessee has been grossly negligent for non-prosecuting the present appeal. Therefore, the appeal is taken up for hearing in the absence of the assessee and is being disposed off on the basis of material available on records. FACTS OF THE CASE 3. Facts giving rise to the present appeal are that in this case, original return of income declaring income of Rs. 2,38,100/- was filed on 30.09.2008 which was processed u/s. 143(1) of the Income tax Act, 1961 ( the Act ). Subsequently, on enquiries conducted by the Department, it was found that the assessee company had obtained accommodation entries from certain conduit/paper companies. The assessment was re-opened u/s. 147 of the Act. Accordingly, a notice u/s. 148 of the Act was issued to the assessee on 25.03.2015 to furnish return of income in prescribed form and manner. In response to the statutory notice, Shri I.S. Gulati, Ld. AR for the assessee attended the proceedings and filed letter dated 23.02.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e law and the facts of the case on record. A perusal of the assessment order reveals that during the course of the assessment proceedings, the Ld. AO asked the appellant to establish the credits appearing in its books of account. However, no details were filed by the latter. As per the provisions of section 68, the onus was on the appellant to establish the identify and credit worthiness of the creditors and the genuineness of the transaction. However, the said onus was not discharged by the appellant. Based upon the statement of Sh. V.K. Jain, who controlled the companies which allegedly gave credits to the appellant, wherein he stated that he had provided accommodation entries to various entities through such conduit companies, Ld. AO held such cash credits as bogus. 5.6 Further inquiries were conducted by Ld. AO during the remand proceedings and notices u/s. 133(6) were issued to all the four companies from whom the appellant has shown to have taken credits. However, all such notices were returned undelivered by the postal authorities. Therefore, Ld. AO concluded in para 2.4 of the remand report that this confirms the finding recorded in the assessment order that all these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see who wants to evade tax is to have some recitals made in a document either executed by him or executed in his favour, then the door will be left wide open to evade tax. The taxing authorities are not required to put on blinkers while looking at the documents produced before them. They are entitled to look into the surrounding circumstances to find out the reality of the recitals made in those documents. 5.9 In the case of CIT vs. Nova Promoters and Finlease (P) Ltd. (342 ITR 169), Hon'ble jurisdictional High Court observed that the findings of the Tribunal were based on irrelevant material or had been entered ignoring relevant material. The finding that the share application monies had come through account payee cheques was, at best, neutral. The question required a thorough examination and not a superficial examination. The fact that the companies which subscribed to the shares were borne on the file of the Registrar of Companies was again a neutral fact. That these companies were complying with such formalities did not add any credibility or evidentiary value. In any case, it did not ipso facto prove that the transactions were genuine. Material was gathered by the in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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