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TMI Blog2024 (12) TMI 204X X X X Extracts X X X X X X X X Extracts X X X X ..... ent Years 2014-15, 2015-16 and 2016-17 in case of the petitioner assessee. 4. As the facts are common, the same can be summarized as under: 4.1 The petitioner is in the business of trading in gold and silver bullion. The petitioner filed return of income for the respective assessment years. For the Assessment Year 2014-15, the case of the assessee was selected for scrutiny and the order under section 143 (3) was passed. For the remaining two assessment years, no scrutiny assessment was undertaken. 4.2 The respondent-Assessing Officer upon information received from credible sources that the petitioner has deposited cash of Rs. 16.80 Crore during the year 2013-14 in the bank account and on perusal of the details available it was found that the petitioner made cash sales without keeping proper documentary evidence and identity of the customers on the pretext that under no law it is mandatory to keep the details and during the year, cash deposit appearing in the bank account of the petitioner was found as under in all the three years, hence, the Assessing Officer formed reason to believe that income has escaped assessment: Assessment Year Money Appearing the bank account of the Pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... investigation. It was therefore submitted that there was no failure on the part of the petitioner to disclose truly and fully all material facts so far as Assessment Year 2014-15 is concerned and no income has escaped assessment. 5.3 Referring to the order disposing off the objections it was pointed out that the respondent-Assessing Officer has not dealt with any of the objection raised by the petitioner but has only referred to the provisions of the Act and various decisions to come to the conclusion that the Assessing Officer shall look into the objections at the time of assessment proceedings and he has formed reason to believe that there is escapement of income on the basis of information available with him. 5.4 So far as other two assessment years are concerned, it was submitted by learned Senior Advocate Mr. Soparkar that reasons are identical inasmuch as the amount of Rs.16.80 Crore is found in the reasons recorded for each of the Assessment Year. It was further submitted that the amount deposited in cash by the petitioner in the bank represents the cash sales which is already reflected in the books of accounts and the reasons are factually incorrect having no live link wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the AO at that time. The AO was not having information from the Investigation Wing at the time of framing assessment order. Hence, the particular issue on which the case is reopened was not examined by the then AO. It is further seen from the case record of the assessee related to scrutiny assessment u/s. 143 (3) of the Act for A.Y. 2014-15 that vide question no. 10 in notice u/s. 142 (1) of the Act dated 01.08.2016, the assessee was asked to submit certain details. The relevant portion of the questionnaire is reproduced as under: "Also furnish month wise details of sales and purchases, both in quantity and value alongwith details along with details of Month wise consumption of raw materials, production of finished goods, yield ratio and reason for intra month variation In yield ratio, if any. Also furnish party wise purchases and sales with name, address and amount." In response to the above notice, the assessee vide its submission dated 10.08.2016 has stated that "The month wise details of sales and purchase in quantity and value is as per EXHIBIT:D". But, it is noticed from the 'Exhibit:D' furnished by the assessee that only month wise purchase and sales summary has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unexplained money. On perusal of information so received from Investigation Wing, Indore, it is noticed that the assessee-company J K Bullions Pvt. Ltd. (AACCJ1665K)is found to be the owner and beneficiary of the money to the tune of Rs.4,52,99,000/-as reflected in the information received from Investigation Wing, Indore. The financial transaction as discussed above is clearly attract the provision of section 69A of the Income-tax Act and therefore required to be added back to the total Income of the assessee. As per the Information received from the credible sources that the assesses has deposited cash of Rs.16.80 crores during the year. On perusal of details available, Its found that the assessee has made cash sales to customers v without obtaining complete identity of the customer/purchaser. It Is found that the gold invoices (retail and non-retails) for 01.04.2014 to 31.03.2015, there is no signature of authorized person on sales invoices. Further, there is no signature of the person who sold the said items. No Signature of persons who have taken delivery in lieu of the cash paid by them for alleged purchase of gold/silver items. All the invoices appear to be prepared by co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t under no law it is mandatory to keep such details. On perusal of information so received from Investigation Wing, Ahmedabad, it is noticed that the assessee J K Bullions Pvt. Ltd. (AACCJ1665K)is found to be the owner of the money appearing in the bank accounts to the tune of Rs. 5,04,50,27,153/-/-and the financial transaction as discussed above is clearly attract the provision of section 69A of the income-tax Act and therefore required to be added back to the total income of the assessee. Failure on the part of the assessee to disclose fully and truly all the material facts necessary for the assessment, the income of the assessee has escaped assessment to the tune of Rs. 5,04,50,27,153/- for the AY 2014-15 within the meaning of Section 147 of the Income-tax Act, 1961. I have, therefore, reason to believe that this is a fit case for the opening the assessment u/s. 147 of the Act and for issue of notice u/s. 148 of the Income-tax Act, 1961. [III} For A.y. 2016-17 in SCA 2917 the reasons are as under: "Issues as per reasons recorded for reopening BASIS OF FORMING REASON TO BELIEVE AND DETAILS OF ESCAPEMENT OF INCOME: As per the information received from the credible source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so common. Only the information of the Investigation Wing Indore so far as Assessment Year 2015-16 is different which is explained by the petitioner. However, the same is not considered by the Assessing Officer in the order disposing of the objections. 9. On perusal of the reasons recorded, it is apparent that the same are absolutely cryptic and vague. It does not disclose any nexus between the information received and the satisfaction recorded to form reason to believe that income has escaped assessment resulting into non-application of mind by the Assessing Officer while recording reasons to assume jurisdiction to reopen the assessment. It is a trite law that when the reasons recorded are cryptic, vague having no nexus and no application of mind, the Assessing Officer cannot assume the jurisdiction to reopen the assessment. Even the order disposing of the objection is a non-speaking order. We are unable to understand as to how the deposits made in the bank account would result in escapement of income, more particularly, when the assessee has categorically stated in the objections that the same represent the cash sales which is deposited in the bank account and duly recorded in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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