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TMI Blog2024 (10) TMI 857X X X X Extracts X X X X X X X X Extracts X X X X ..... nformation that the assessee had booked loss/profit by misusing the platform of NMCE is concerned, the said information, in itself, is a vague information. Even, the said information does not suggest as to whether the assessee has booked bogus loss or bogus profit, what to say of the quantum of such loss or profit booked by the assessee. There is no mention of the name of the parties, no details of the transactions etc. in the reasons recorded and no amount has been mentioned. The reopening on the basis of such a vague information and even without knowing whether the assessee has booked bogus loss or bogus profit, cannot be said to be an information for forming the belief that the income of the assessee has escaped assessment. Therefore, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the transactions done by the assessee, has made the impugned additions, which, otherwise are not sustainable on merits also. Assessee appeal allowed. - Shri Sanjay Garg, Judicial Member and Shri Rakesh Mishra, Accountant Member For the Asessee : Shri A. K. Tibrewal, FCA For the Revenue : Shri Vineet Kumar, Addl. CIT- Sr. DR ORDER PER SANJAY GARG, JUDICIAL MEMBER: The present appeal has been preferred by the assessee against the order dated 29.02.2024 of the National Faceless Appeal Centre [hereinafter referred to as CIT(A) ] passed u/s 250 of the Income Tax Act (hereinafter referred to as the Act ). 2. The assessee in this appeal is aggrieved by the action of the ld. CIT(A) in confirming the addition made by the Assessing Officer on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nting to Rs. 3,25,00,000/- From ADIT (Inv.), Unit-3(1), Kolkata During F.Y. 2010-11M/s Quadeye Securities Pvt. Ltd (previously known as M/s Elephanta Share Trading Pvt. Ltd.) had incurred huge bogus commodity loss in the NMCE platform, which was adjusted with total income of assessee. 4.1 The ld. counsel for the assessee has submitted that so far as the reopening on account of accommodation entries by the assessee from shell companies i.e. M/s Inter Globe Finance Ltd. and M/s Deepak Pens Plastic Pvt. Ltd. was concerned, no addition has been made by the Assessing Officer in that respect in the consequential assessment proceedings. So far as the reopening in respect of the third reason that the assessee had incurred huge bogus commodity loss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the Investigation Wing. He, therefore, has submitted that reopening of assessment in this case was bad in law. 4.3 The ld. counsel, in this respect, has relied upon the following case laws: 1. Hindustan Lever Ltd. -vs- R.B. Wadkar - [2004] 137 Taxman 479 (Bombay) / [2004] 268 ITR 332 (Bombay) / [2004] 190 CTR 166 (Bombay) 2. PCIT -vs- Meenakshi Overseas (P.) Ltd [2017] 82 taxmann.com 300 (Delhi) / [2017] 395 ITR677 (Delhi) 3. PCIT -Vs- G G Pharma India Ltd [2017] 81 taxmann.com 109 (Delhi) / (2016] 384 ITR 147 (Delhi) 4. PCIT -vs- Shodiman Investments (P.) Ltd [2018] 93 taxmann.com 153 (Bombay) / [2020] 422 ITR 337 (Bombay) 5. Balaji Mines and Minerals (P.) Ltd -vs- ACIT - [2024] 163 taxmann. com 37 (Bombay) 6. Reynolds Shirting Ltd -vs- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been held time and again that the reasons to believe regarding the escapement of the income should be based on certain tangible material and it should not be mere pretence of the Assessing Officer. The reasons to believe does not mean reasons to suspect. Reopening of the assessment is not permitted for making fishing and roving enquiries. The Assessing Officer, after receipt of alleged information received from the Investigation Wing was supposed to corelate the same with the records and other facts of the case and thereafter should have satisfied himself of escapement of income. Reopening is not permissible on the basis of borrowed satisfaction of the Assessing Officer. The powers of Assessing Officer to reopen an assessment, though wide, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation does not suggest as to whether the assessee has booked bogus loss or bogus profit, what to say of the quantum of such loss or profit booked by the assessee. There is no mention of the name of the parties, no details of the transactions etc. in the reasons recorded and no amount has been mentioned. The reopening on the basis of such a vague information and even without knowing whether the assessee has booked bogus loss or bogus profit, cannot be said to be an information for forming the belief that the income of the assessee has escaped assessment. Therefore, the reasons pointed out by the Assessing Officer cannot be said to be the reasons to form the belief that income of the assessee had escaped assessment. The Hon ble Delhi High Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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