9911796707
TMI Blog2025 (2) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... aped assessment, meaning thereby the AO has not recorded his satisfaction and reasons are vague, unambiguous and scanty.
No details/information have been recorded as from whom the money was received and when it was received. In our opinion the re-assessment can be not be made on vague, scanty and ambiguous reasons recorded.
As there is no satisfaction or independent application of mind by the ld. AO to the information received. Moreover, the reasons are vague, scanty and ambiguous. Therefore, we are inclined to quash the reopening of assessment. Consequently, the appeal of the assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... investigation wing at the business premises of Shri Santosh Kumar Shah at 9/12, Lal Bazar Street, Block-E, 2nd Floor, Kolkata-700001 and his resident at 22, Lake Town, Block-B, Flat No.4A and 5A, Kolkata-700089. The AO further noted that during the search and seizure operation statement of various persons such as Shri Gopal Ranjan Saha Roy, an employee of Santosh Kumar Shah, Sri Barun Nahar Roy, former director of Edward Supply Private Limited, Sri Viond Kumar Shah, a relative of Shri Santosh Kumar Shah and Shri Santosh Kumar Shah were recorded. During the course of recording of the statements, the above persons admitted that the companies controlled and run by Shri Santosh Kumar Shah were engaged in providing accommodation entries in the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... easons recorded by the ld. AO, he nowhere stated that when the money was received and from whom it was received and after reproducing the investigation wing report in the last para simply noted that 'I have reason to belief that income of the assessee chargeable to tax has escaped assessment and thus, it is fit case for invoking the provisions of Section 147 of the Act' and accordingly, proposal was submitted to the ld. PCIT, Kolkata for his kind approval. The ld. AR submitted that the ld. AO has acted on the borrowed satisfaction and there is no independent application of mind to the facts of the case. The ld. AR therefore in defence of his arguments relied on the decision of Hon'ble Delhi High court in the CIT vs. Insecticides (India) Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is squarely covered by the decision of Hon'ble Delhi High court in the CIT vs. Insecticides (India) Ltd. (supra). Further, it is a case borrowed satisfaction and non-application of mind by the ld. AO too. We observe that the ld. AO has simply, after extracting the report from the investigation wing, noted that income of the assessee has escaped assessment. For the sake of ready reference, the reasons recorded are extracted below: - "Annexure During the course of the proceeding under section 147/143(3) of the Income Tax Act, 1961 it is seen that the assessee failed to offer satisfactory explanation about the nature and sources of credit of sums- credited to the bank account No. 191010200012290 with Axis Bank (A-Y. 2008-09). During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rch operation conducted. Sri Shah and his associates have admitted in the statement recorded on oath that they used to use all accounts found, for accommodation entries. The previous address of the assessee company was the address of Santosh Kumar shah as well. The modus operandi has also been explained. The parties wanted for accommodation entries of share capital or loan paid the amount in cash and Shri Shah deposited the cash in the bank accounts maintained by him in the name of various companies/individuals and after layering the money into some of the bank accounts, the money was paid as share capital or loan to the party paid the money in cash. The total deposits made into the bank accounts maintained by Shri Shah and his associates ..... X X X X Extracts X X X X X X X X Extracts X X X X
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