Raimaladitya Textile Pvt. Ltd. Vs ITO (Bombay High C0urt)
The allegations in the reasons recorded are that as per information summary available to Revenue there is company by the name Raimaladitya Textile Pvt. Ltd., from whom bogus loan has been taken in F.Y. 2012-13 in the sum of Rs.40,88,06,800/- and the said Raimaladitya Textile Ltd., provided bogus accommodation entries and hence all the transactions entered into between the said entity and petitioner are bogus accommodation entries in nature. But what is strange is petitioner itself is Raimaladitya Textile Pvt. Ltd., the assessee. It is incomprehensible that petitioner would provide bogus accommodation entries to itself by loan having been given to itself which amount therefore has escaped assessment.
Learned ASG submitted that there was a mistake. If that was a mistake that could certainly not be the reason to believe that petitioner’s income has escaped assessment. We further note that approval under Section 151 of the Act also has been given on the same reasons, which would also indicate total non application of mind by not only the JAO but also by the Revenue Head who had recommended the case to the Principal CIT and also Principal CIT himself. One thing is evident that the approval is granted in a mechanical way without applying their mind.
HC Quashes the order.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
1. The pleadings in the petition are complete and therefore we decided to consider the petition finally at this stage itself.
2. Petitioner has approached this court aggrieved by a notice dated 31st March, 2021 issued under Section 148 of the Income Tax Act, 1961 (the Act) where the Jurisdictional Assessing Officer (JAO) has asserted that he has reasons to believe that petitioner’s income chargeable to tax for A.Y. 2013-14 has escaped assessment within the meaning of Section 147 of the Act. The reasons recorded for coming to such a belief can be found in a letter dated 2nd June, 2021 addressed by the JAO to petitioner. The reasons read as under :
Issues as per reasons recorded for reopening
The Income Tax Department has collected information about taxpayers from various sources such as Annual Information Return (AIR), Central Information Branch (CIB), Tax Deduction at Source (TDS) Statement and information uploaded by Investigation Wings/Central Circle/I & CI on Insight Portal.
As per the information summary available in Insight Portal, the following information relating to Assessment Year 2013-14 pertains to the assessee company.
