9911796707
TMI Blog2024 (12) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... on wrong assumption of facts. It is a very well settled law that ld. AO has acquired jurisdiction based on valid reasons and material and information referred to in the reasons recorded should have live link nexus with the income escaping assessment. If there is no such material and information relevant to the assessee, then ld. AO cannot reopen the case based on incorrect assumption of facts recorded and the reasons recorded. Reasons recorded by the AO do not clothe the him with the jurisdiction to reopen the assessment u/s 147 for the second time and accordingly, the reason recorded as well as the notice issued u/s. 148 is invalid and accordingly, same is quashed. Thus, the entire re-assessment order is quashed. Appeal of the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 08-06-1999. The Information is received from Dy. Commissioner of Income Tax, Central Circle-4, Surat (Gujrat) in the case of Pravin Jain Group. The group provides accommodation entries of bogus sales through various benami concerns operated managed by above group. Based on the documents found the search Seizer action dated 01/10/2013 by the DDIT(INV), unit-1 (4) Mumbai and statement of above group, information has been received that M/s. Innovators Fa ade Systems Pvt Ltd PAN NO.AAACI7326Q is one of the beneficiary who has got accommodation entry for A.Y.2009-10 from above group as per information received the assessee has obtain accommodation entry amounting to Rs. 20,00,000/- during A.Y.2009-10. Keeping in view of the above information re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llenged the validity of reopening and the reasons recorded on the ground that, firstly, it is based on borrowed satisfaction; and secondly, there is no application of mind by the ld. AO because in the reasons recorded, ld. AO has mentioned that assessee has received accommodation entry of Rs. 20,00,000/- however, no such amount of Rs. 20,00,000/- has been received albeit assessee has received share application money of Rs. 99,00,000/- from 6 different parties. He also pointed out that at page 36-37 of the CIT (A) order there is a mention of list of various companies owned and controlled by Shri Pravin Jain which are running into 52 companies and in the list of those companies of Shri Pravin Jain, none of the six companies from whom assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion has been received that assessee i.e., Innovators Fa ade Systems Ltd., is one of the beneficiary who has got accommodation entry for A.Y.2009-10 amounting to Rs. 20,00,000/- and therefore, ld. AO has the reason to believe that amount of Rs. 20,00,000/- has escaped assessment within the meaning of Section 147 due to failure on the part of the assessee of disclosed fully and truly all material facts necessary for its assessment for A.Y.2009-10. Thereafter, ld. AO de-hors the information sated in the reasons recorded, that there was an accommodation entry of Rs. 20,00,000/-, has ultimately gone by the entries in the books of accounts wherein assessee had shown share application monies from 6 different companies who had no connection with th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accommodation entry. There has to be some live link nexus with the information and income escaping assessment. If the information was for Rs. 20,00,000/- then what was the nature of this information and the accommodation entry and from which of the company there is no whisper. This shows that there is a complete lack of application of mind by the ld. AO especially when reopening is being done for the second time. 9. As pointed out by the ld. Counsel for the assessee that ld. CIT (A) in his impugned order at pages 36-38 has extracted the statement of Shri Pravin Jain, wherein in Question No.63, he has given the list of companies in which he was a Director and has given the list of 13 such companies and also the list of 39 companies where al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... International 24. KLI Diamond 25. Kunal Gems 26 Kush Intemational 27. Mahalxmi Corporation 28. Mahalxmi Trading Co 29. Minal Corporation 30. Mohit International 31. Natasha Enterprises 32. Paras Gems 33. Pratik Impex 34. RS Enterprises 35. Raj Export 36. Ryan International 37. Seven Star Gems 38. Suraj Gems 39. Taj Impex 10. From the perusal of the aforesaid list of companies and the companies from whom assessee had received share application money, it can be seen that nowhere these companies have been mentioned by Shri Pravin Jain that any of the 6 entities were managed and controlled by him. Thus, the very premise of the ld. AO while recording the reasons is based on wrong assumption of facts. It is a very well settled law that ld. AO ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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