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TMI Blog2022 (6) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 2011-12 and appeal no. 10438/2019-20 for the assessment year 2012-13. The ITA No. 571/Del/2021, A.Y. 2011-12 arises out of assessment order dated 27.12.2018 & the ITA No. 572/Del/2021, A.Y. 2012-13 arises out of order dated 24.12.2019 passed u/s. 147 read with section 143(3) of the Income Tax Act, 1961 passed by ACIT, Circle-30, New Delhi. The Cross-objections to same have been filed by the Assessee. However, as the issues involved are common the same are taken up together for the convenience and avoid cost of repetition. 2. The facts in brief are the assessee was incorporated in 1998 under the provisions of the Companies Act, 1956 and is engaged in the business of trading and selling of timber, plywood, etc. The assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dded u/s. 68 of the Act on the basis that as the same has been included in the amount of sales credited to the P & L Account adding it in terms of Section 68 will tantamount to double addition. However, the ground of appeal of assessee challenging exercise of very jurisdiction by the Assessing Officer u/s. 143 of the Act were dismissed. 4. The grounds raised in appeal and Cross objections are common except the amounts involved. The following are grounds raised in appeal for AY 2011-12:- 1. The Ld. CIT(A) has erred in law & on the facts in deleting the addition of Rs. 2,90,58,579/- and Rs. 2,90,585/- made by the AO u/s. 68 and u/s. 69C of the IT Act. 2. The Ld. CIT(A) has erred in law & on the facts in deleting the additions of Rs. 2,90 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments were not received by the assessee towards share capital/premium or unsecured loan/advance or any other form of capital account. 4. That on the facts of the case and under the law, the learned CIT(A) has erred in not holding that the assessment proceedings as well as the assessment order passed u/s. 143(3)/147 are liable to be quashed, because an order disposing off the objections was not served upon the assessee. Note: The assessee craves leave to amend/modify aforementioned grounds of appeal and/or to raise additional grounds of appeal, at any time prior to/during the course of appellate proceedings. 5. Heard and perused record. The grounds of cross objection no. 1, 2 and 4 raised by the assessee touch the question of juri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e available with the Ld. AO but instead of examining these on borrowed satisfaction the reassessment was done. In this context, the ld. Counsel for the assessee relied judgment of Hon'ble Supreme Court of India in CIT vs. Daulat Ram Rawatmull 87 ITR 349 to contend that any finding based on conjectures, surmises and suspicions cannot be sustained. He relied judgment of Hon'ble Delhi High Court Avtee Ltd. v. DCIT [2017] 395 ITR 434 (Delhi) to contend that the reasons to believe recorded by the Ld. AO should make it clear as to what tangible material was considered by the Ld. AO. Judgment of Hon'ble Delhi High Court in Pr. Commissioner of Income Tax vs. Meenakshi Overseas (P.) Ltd. [2017] 395 ITR 677 was relied to submit that in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on received from Dy. Director of Income Tax (Investigation)-III, Gurugram with regard to search action in the case of M/s. Spaze Group on the basis of statements of Sh. Kishori Sharan Goel it was found that the present assessee was one of the beneficiaries of accommodation entries and based upon that the ld. AO recorded the reasons to believe to issue notice u/s. 148 of the Act. 10. Thus, very apparently on the basis of statement of one person the satisfaction note was prepared calling for reply from the assessee. Hon'ble Delhi High Court in the judgment of Pr. Commissioner of Income Tax vs. Meenakshi Overseas (P.) Ltd. while dealing with the case of appeal by the revenue arising out of quashing of the assessment proceedings u/s. 147/1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 17.02.2016 the ld. AO made a conclusion that assessee had received accommodation entries. However, there is not a word in this reasons that what were the nature of accommodation entries because it is not a case of unexplained cash credits but a bogus sale. How the return filed reflected a possible escape of income. The reasons as recorded by the Ld. AO has no discussion of the material which was taken in account by the investigation wing. It was considered to be sacrosanct . The statement of Kishori Saran Goel is not part of the reasons to believe nor supplied and confronted to assessee, while issuing notice u/s. 148 of the Act. There is force in contention of counsel of assessee that as scrutiny assessment u/s. 153A in regard to assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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