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TMI Blog2025 (3) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... 72,89,457/-, whereas the assessee has challenged by way of cross objection the legality of reopening of assessment by the ld. AO u/s 147 of the Act. Since, the assessee has raised legal issue in the ground no.3 qua reopening of assessment u/s 147 of the Act. Therefore, we are inclined to decide the first the legal issue raised in ground no.3 of the cross objection of the assessee. The said ground raised is as under:- "3. For that the proceedings u/s 147 initiated on the basis of vague reasons are not maintainable." 03. The facts in brief are that the assessee filed the return of income on 21.07.2017 declaring total income at Rs. nil. Thereafter, a search action in case of Banka Group of companies was conducted on 25.05.2018, in which it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal of the assessee on merit, however, the legal issue was not adjudicated. Hence, the Revenue's appeal before us is against the deletion of addition while the assessee has challenged the validity of reassessment proceedings based on the vague and scanty reasons. 05. After hearing the rival contentions and perusing the materials available on record, we find that the case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on 31.03.2021, after obtaining the approval from the competent authority. From the perusal of the reasons recorded, a copy of which is attached at page no. 2 to 4 of the Paper Book, we observe that as per the information available with department, the assessee has taken accommodati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r forms, from the paper/shell companies of Bank as Group 4. Further the financial analysis of such paper/shell companies of Banka Group from which such beneficiaries have been identified, has been carried out to ascertain their financial creditworthiness. The details of such financial analysis carried out company wise are provided in CD2 This led to revelation of various noticeable points like: (1) No profit accumulation in the company(s) across various financial years (1) No actual business done by the company(s) being zero turn over reported in various financial years (it) Most of the companies have shown income under the head Other Income which shows that these companies have no actual business activities and only getting interest inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th your charge Enclosed as ANNEXURE and provide the format given below). The details is being mentioned as under which requires further analysis, investigation and verification by the jurisdictional assessing officers at their end as per provision of Income tax Act, 1961. So far as finalizing the quantum of concealed income is concerned, the Assessing Officer should not restrict himself to the findings incorporated in this report In this case, as per the information available the assessee has taken accommodation entry to the tune of Rs. 68,00,224/- In view of the above, I have reasons to believe that the assessee's income to the tune of Rs. 68,00,224/- has escaped assessment as per clause (b) under Explanation 2 of section 147 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... borrowed satisfaction without any independent application of mind. Therefore, we are of the view that the case of the assessee was invalidly reopened u/s 148 of the Act. The case of the assessee find force from the decision of Hon'ble Delhi High court in the CIT vs. Insecticides (India) Ltd. (2013) 38 taxmann.com 403 (Delhi), wherein the Hon'ble High Court has held that the reopening of assessment cannot be allowed on the basis of sanctity, vague reasons, where the ld. AO has not mentioned in the reasons recorded the details of transactions and also the details of persons / entity from whom the money was received by the assessee. Considering the facts of the case in the light of the above decision, we are inclined to quash the reopening ..... X X X X Extracts X X X X X X X X Extracts X X X X
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