Case Law Details
Suraj Pulses Pvt. Ltd. Vs PCIT (ITAT Delhi)
We find that as far as the reasons recorded, though there is a specific mention about amount of 20,50,000/- received by way of accommodation entry, however neither there is any mention from whom the assessee had received the amount nor what is the nature of the entry nor whether it is in cash or cheque. In fact, it is not discernible as to what is the nature of transaction. What is mentioned is that assessee was found to be beneficiary of amount of Rs.20,50,000/- which is in the nature of bogus accommodation entry. The ld. DR has submitted that the very fact that assessee was beneficiary of accommodation entry of a particular amount that is sufficient enough to entertain reason to believe.
However, the reasons recorded at least mention what is the nature of accommodation entry and which is the entity from which assessee has received the amount. Whether the entry has been received towards share application money or loan or gift, etc. These reasons are purely vague and show there is a non application of mind on the information which was received and the reason recorded by the Assessing Officer.
The Assessing Officer has not even mentioned as to what was the nature of entry as given in the report and simply saying that assessee received entry to the tune of Rs.20,50,000/- from entry operators during the period is not sufficient. Such a vague reasons cannot justify the reopening and as observed above, the Assessing Officer can validly acquire jurisdiction only when the reasons recorded itself points out or speaks of live link nexus with the material available on record and income escaping assessment and it should not be vague or mere pretence.
The Assessing Officer should have at least perused the report and examine what is the material pertaining to assessee and what is the nature of entry and whether it is matching with records of the assessee. He should have prima facie seen what is the nature of bogus entry and from which entity assessee has received.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
