9911796707
TMI Blog2023 (12) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... erred 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 of the ld. Counsel for the assessee before us was that the belief of escapement of income of the assessee was not that of the Assessing Officer but was a borrowed belief of the DCIT, Central Circle-1, Rajkot on the basis of whose information, to the effect that the assessee had taken accommodation entries during t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal Shroff/17-18 dated: 08.02.2018 that search action u/s 132 of the Act on 19.09.2014 was carried at the premises of M/s National shroff & Co who is engaged in the business of shroff/angadiya. In the course of search proceedings it is gathered that during the year the assessee has obtained 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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tered into transactions with the assessee giving him cheque/DD of Rs. 20,75,100/- during the year and this National Shroff & Co. was found to be engaged in the business of Shroff/angadiya which was revealed during search action conducted on him under Section 132 of the Act. That, based on this information, the Assessing Officer formed a belief that the amounts received from the National Shroff & Co. represented unaccounted sales of the assessee and accordingly he recorded his reasons for reopening the case of the assessee. 6. The ld. Counsel for the assessee pointed out that nowhere in the reason it comes out that the Assessing Officer had attempted verifying the information received by him either from the records of the assessee or in any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 of cash amounting to Rs. 20,75,100/- from M/s. National Shroff. Accordingly notice calling for information u/s 133(6) was issued to Shri Anirudhsinh J Solanki, Proprietor of National Shroff & Co., on 25.09.2018 and the information was furnished as called for vide letter dt. 28.09.2018 from Shri. Anirudhsinj J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 86500 Total 26,71,300/- Learned Counsel for the assessee contended that it is evident from the same that as on the date of recording of the satisfaction of belief of escapement of income, i.e. on 23.03.2018, the Assessing Officer had only the bare information of M/s. National Shroff & Co. having given the assessee the amounts by cheque/draft, totaling in all to Rs. 26,71,300/-. That he did not even have the details of these amounts received by the assessee from M/s. National Shroff & Co., which was obtained by him later, i.e. after six months in September, 2018, and even thereafter the Assessing Officer had not tried to verify this information from the records of the assessee or by conducting any inquiry from the assessee as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 from M/s. National Shroff & Co. and even after obtaining the same, the Assessing Officer had made no attempt to verify whether these amounts had actually been received by the assessee and in what manner. 11. In view of the same, we completely agree with the ld. Counsel for the assessee that the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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