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TMI Blog2023 (5) TMI 315X X X X Extracts X X X X X X X X Extracts X X X X ..... reasons recorded we are unable to see any exercise done by the AO to ensure what is the character of alleged accommodation entries and no exercise has been undertaken by him regarding impugned five entries tabulated in the reasons recorded. In the last operative part he again reiterated that on the basis of information received from Investigation Wing he has reason to believe that income as escaped assessment. Therefore, it is clear that AO has acted only on the basis of information received from Investigation Wing without any exercise it has own level and only on the basis of borrowed satisfaction, he initiated the reopening of assessment u/s 147 and issued notice u/s 148 of the Act, which are invalid being bad in law and liable to be quashed. - ITA No. 4080/Del/2019 - - - Dated:- 2-5-2023 - Shri C. M. Garg, Judicial Member For the Assessee : Sh. Ved Jain, Adv Sh. Aman Garg, CA For the Revenue : Sh. Om Parkash, Sr. DR ORDER 1. This is an appeal filed by the assessee against the order of the ld CIT(A)-I, New Delhi dated 25.03.2019 for Assessment Year 2008- 09. 2. The assessee has raised the following grounds of appeal:- 1. On the facts and circ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has erred, both on facts and in law in confirming the action of the learned AO under section 148 of the Income tax Act is illegal, that the same has been passed without assumption of valid jurisdiction. 9. (1) On the facts and circumstances of the case, the learned CIT(A) has erred both on facts and in law in confirming the addition of Rs. 25,00,000/- made by AO on account of share capital and commission there upon of Rs. 43,750/- treating the same as unexplained credit under Section 68 of the Act. (ii) That the said addition has been confirmed rejecting the detailed explanation and evidences brought on record by the assessee to prove the identity and creditworthiness of the shareholders as well as the genuineness of the transaction. 10. On the facts and circumstances of the case, the learned CIT(A) has grossly erred both on facts and in law in confirming the above addition by indulging in surmises without bringing on any direct evidence against the assessee, only on the basis of presumption and assumption. 11. On the facts and circumstances of the case the learned CIT(A) has erred both on facts and in law in confirming the addition made by AO despite the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rendra Kumar Jain group of cases (entry operator) and further enquiries, it has been found that accommodation entries has been provided by this group to various entities. The report of the DDIT(Inv). Unit- VI(2), Delhi dated 12/3/2013 was enclosed with this letter whereby it has been intimated that Sh. S.K Jain and Sh. Virendra Jain are known entry operators and are in the business of providing accommodation entries to various beneficiary companies/ entities/ persons through cheques through a number of paper and dummy companies in lieu of cash. The ADIT in the report has pointed out the receipt of accommodation entries by various entities in the form of Share Capital/Premium/Loan or the basis of documents seized during the course of the search proceedings of Sh. Surendra Kumar Jain group of cases. The name of the assessee company, M/s Amrit Bakewell Products Pvt. Ltd., appears in the list of beneficiaries who have taken accommodation entries. The investigation wing's report has recorded the true nature of such transactions being sham transactions/ accommodation entries and the entry giving entities has been shown to be mere shell companies of no means. I have perused the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CH NO. 102442 13/03/08 5,00,000 SATISH GARG A-95 18 13/03'08 M/s Humtum Marketing Pvt. Ltd. M/s Amrit Bakewell Products Pvt. Ltd. AXIS CH NO. C94566 13/03/08 5,00,000 SATISH GARG A-95 18 13/03/08 M/s Singhai Securities Pvt Ltd. M/s Amrit Bakewell Products Pvt. Ltd. AXIS CH NO. 120031 13/03/08 5,00,000 SATISH GARG A-95 18 1 TOTAL 25,00,00 0 Such true nature of the transaction undertaken by the assessee company has come light only after the detailed investigation carried by the Investigation Wing, Delhi. This tantamount to fresh information. The transaction involving 25,00,000 mentioned in the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provider thereafter he noted a detailed chart containing five entries and below the chart he noted that it is a fresh information regarding the fact that the assessee is a beneficiary of bogus accommodation entries which represents undisclosed income/ income from other sources even upto this stage the AO was not characterize the entry found by the Investigation Wing. Even in the last para he clearly stated that on the basis of information received from Investigation Wing he has reason to believe that income has escaped income. No exercise has been undertaken of the AO to ensure as what were the character of entries and what is basis of which he has reason to believe that income as escaped assessment. 8. Under identical facts and circumstances of ITAT Delhi Benches in Savita Holding Vs. ITO (supra) has held that follows:- 8. AO did not refer to any material found during the course of search against the assessee in the reasons recorded for reopening of the assessment. The AO believed the information received from Investigation Wing that assessee has received accommodation entry but all the annexure seized during the course of search from S.K. Jain group of cases ..... X X X X Extracts X X X X X X X X Extracts X X X X
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