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TMI Blog2020 (6) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... ued notice mechanically without applying his mind. Such action of the Assessing Officer did not find any favour with the Hon'ble High Court of Delhi in the case of RMG Polyvinyl [ 2017 (7) TMI 371 - DELHI HIGH COURT ] Assessing Officer has wrongly assumed jurisdiction and accordingly, notice u/s 148 of the Act is hereby quashed thereby quashing the assessment order.- Decided in favour of assessee. - ITA No. 7437/DEL/2018 - - - Dated:- 11-6-2020 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE, JUDICIAL MEMBER For the Assessee : Shri Rohit Tiwari, Adv For the Revenue : Shri R.K. Gupta, Sr. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, This appeal by the assessee is preferred against the or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that reasons recorded by the Assessing Officer and approval given by the Additional CIT, are mechanical and devoid of any application of mind. 7. It is the say of the ld. counsel for the assessee that the Assessing Officer proceeded by assuming that no return of income was filed by the assessee prior to the issue of notice u/s 148 of the Act. It is the say of the ld. counsel for the assessee that the assessee had already filed return of income and by ignoring this fact, notice issued by the Assessing Officer u/s 148 of the Act is without any application of mind. The ld. counsel for the assessee further pointed out that the approval given by the Additional CIT is undated and it is not known whether the approval was given prior to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation the Income-tax entries received from certain established assessment. entry operators identified by the Investigation Wing during the period relevant to A. Y 2004-05. A comprehensive investigation was carried out by the Investigation Wing for identification of entry operators engaged in the business of money laundering for the beneficiaries and on the basis of investigation carried out and evidences collected, a detailed report has been forwarded. In the instant case, the assessee is found to be the beneficiary of accommodation entry from such entry operators as per the transaction mentioned in the enclosed Annexure-'A' of Rs.1,56,00,000. The accommodation entry provider; have given accommodation entries in the grab of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income is available in the AST database of Income-tax Department. Therefore, it is clear that the assessee has not filed return of income for the A. Y. 2004-05 and consequently has not offered any income for taxation. In the assessment order dated 30th December, 2011 passed consequent upon the reopening of the assessment, the very first line states that the Assessee had filed return declaring income of Rs.4,38,958 on 31/10/2004 which was processed under Section 143(1) of the Act on 04.01.2005. 6. The second glaring error in the reasons was that the total of the accommodation entries was set out as Rs.1.56 crore. In the same assessment order dated 30th December 2011 in para 2.3 it is stated as under: 2.3 It is pertinent t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to the tune of Rs.78 lakh and not Rs.1.56 crore would be a matter of pure speculation at this stage. He may or may not have come to the same conclusion. But that is not the point. The question is of application of mind by the AO to the material available with him before deciding to reopen the assessment under Section 147 of the Act. ------- ------- 13. As in the above case, even in the present case, the Court is unable to discern the link between the tangible material and the formation of the reasons to believe that income had escaped assessment. In the present case too, the information received from the Investigation Wing cannot be said to be tangible material per se without a further inquiry being undertaken by the AO. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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