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TMI Blog2023 (12) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... ut a borrowed belief. Jurisdiction assumed in the present case by the Assessing Officer to frame assessment under Section 147 of the Act is without valid jurisdiction. Decided in favour of assessee. - MRS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER For the Appellant : Shri D.M. Rindani, AR For the Respondent : Shri Ashish Kumar Pandey, Sr. DR ORDER PER ANNAPURNA GUPTA, ACCOUNTANT MEMBER: The present appeal has been filed by the assessee against order of the learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as CIT(A) for short] dated 15.12.2021 passed under Section 250 of the Income Tax Act, 1961 [hereinafter referred to as the Act for short] for the Assessment Year (AY) 2011-12. 2. Ground No.1 raised by the assessee challenges the validity of assessment framed in the present case under Section 147 of the Act. The said ground reads as under:- 1. The ITO, Ward-3(1)(2), Rajkot erred in issuing notice u/s 148 of the Act in the light of reasons recorded and thus assessment framed u/s 143(3) of the Act is bad in law. 3. The contention o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... btained cheque/DD in lieu of cash from M/s. National Shroff. The details of transactions made by the assessee with M/s. National shroff are as under: S. No. Nature of transaction Value (in Rs. ) 1 Cheque /DD issue in his favour 20,75,100 On perusal of the ROI it is seen that the assessee has shown gross sales worth Rs. 63,15,742/- during the year. 3. Looking to the amount of Cheque/DD's obtained by the assessee in lieu of cash, it can be derived that the assessee has understated the sales in his return of income filed In nutshell, there is no full true disclosure of business receipt of the assessee. 4. In view of the above facts, I have reason to believe that there is escapement of income to the extent of Rs. 20,75,100/-. 5. The income chargeable to escaped assessment by reason of failure on the part of above named sore who failed to disclose fully and truly all material fact necessary for the above assessment year within the meaning. 6. In this case a return of income was filed for the year under consideration but no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... while the reasons were recorded on 23.03.2018, as noted in paragraph no.1 of the assessment order, the Assessing Officer had issued notice to M/s. National Shroff Co. calling for information regarding the details of payment made to the assessee under Section 133(6) of the Act only on 25.09.2018, i.e. six months after recording of the reasons by the Assessing Officer for reopening the case of the assessee and it was only on 28.09.2018 that he had received information from the proprietor of M/s. National Shroff Co. that it had given 46 payments to the assessee on various dates by way of cheque or draft, amounting in all to Rs. 26,71,300/-. 7. Our attention was drawn to the contents of paragraph no.4 of the assessment order as under:- 4. As mentioned above the Department has information from Dy.CIT Central Circle-1, Rajkot vide letter No.DCIT/CC1/Rjt/Angadia/National Shroff/17-18 dated 08.02.2018 that search action u/s 132 of the Income tax Act 1961 on 19.09.2014 was carried out the premises of M/s. National Shroff Co engaged in the business of shroff/angadiya. In the search proceedings it was noted that during the year the assessee firm has obtained cheques/DD in lieu o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40000 22 02.12.2010 40000 23 09.12.2012 45000 24 09.12.2012 40000 25 09.12.2012 21000 26 13.12.2010 65000 27 14.12.2010 40000 28 16.12.2010 45000 29 21.12.2010 40000 30 22.12.2010 99000 31 24.12.2010 45000 32 31.12.2010 35000 33 01.01.2011 91800 34 04.01.2011 144000 35 05.01.2011 80000 36 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed post recording of the reasons and even after that no exercise had been conducted by the Assessing Officer to verify the said information from the records or books of assessee or from the assessee in any manner so as to form his own belief of escapement of income. 10. In view of the above facts brought to our notice, it is a fact emanating from records before us that as on the date of recording of reasons by the Assessing Officer of the income of the assessee having escaped assessment, the only information with the Assessing Officer was that obtained from the DCIT, Central Circle-1, Rajkot, that the assessee had obtained accommodation entry from an alleged angadiya/Shroff M/s. National Shroff Co., amounting in all to Rs. 20,75,100/-. That except for this, there was no other information with the Assessing Officer and based on this information, he formed a belief that this amount represented unaccounted sales of the assessee and income to this extent had been escaped assessment. It has been demonstrated before us that even the details of the amount received by the assessee from M/s. National Shroff Co. was obtained by the Assessing Officer post the recording of the reasons f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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