M/s Shiv Shakti Creations Pvt. Ltd., New Delhi V. Pr. CIT, New Delhi

ITA 2975/DEL/2017

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0318 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 12-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revision of order; Document seized; Accommodation entries; Documents seized; Reassessment proceedings; Set aside
• Section: 133A; 133(6); 143(1); 64; 13; 147; 148; 263; 132

Judgement Text

INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G: NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO. 2975/DEL/2017 ASSTT. YEAR: 2007-08 O R D E R PER SUDHANSHU SRIVASTAVA, JM: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST O RDER U/S 263 OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED THE ACT) WHEREIN, VIDE ORDER DATED 24.3.2017, THE LD. PRINCI PAL COMMISSIONER OF INCOME TAX, DELHI 8 {PR. CIT} HAS SET ASIDE THE REASSESSMENT ORDER PASSED IN THE ASSESSEES CASE BY THE ASSESSING OFFICER (AO) ON 30.3.2015 FOR ASSESSMENT YEAR 2007-08 SHIV SHAKTI CREATIONS PVT. LTD. 2249/67, NAIWALA, GURUDWARA ROAD, KAROL BAGH, NEW DELHI 110 005 PAN AAGCS2612H VS. PR. CIT, 8 NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI GAURAV BANSAL, CA DEPARTMENT BY : SHRI S.S. RANA, CIT (DR) DATE OF HEARING 0 9 / 12 /201 9 DATE OF PRONOUNCEMENT 30 / 12 /2019 IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 2 BY NOTING THAT THE SAID REASSESSMENT ORDER WAS NOT ONLY PREJUDICIAL TO THE INTEREST OF THE REVENUE BUT WAS ALSO ERRONEOUS IN SO FAR AS THE AO HAD FAILED TO LOOK INTO THE SEI ZED MATERIAL. 2.0 BRIEF FACTS OF THE CASE ARE THAT A SEARCH A ND SURVEY ACTION WAS CONDUCTED BY DDIT (INVESTIGATION), UNIT VI (2,) NEW DELHI ON 14.9.2010 AT THE VARIOUS PREMISES OF SHRI SURENDER JAIN AND SHRI VIRENDER JAIN AND DURING SUCH SURVEY OPERA TIONS U/S 132 AND 133A OF THE ACT VARIOUS DOCUMENTS AND INFOR MATION WERE UNEARTHED WHICH LED TO BELIEF THAT SHRI SUREND ER JAIN AND SHRI VIRENDER JAIN WERE IN THE BUSINESS OF PROVIDIN G ACCOMMODATION ENTRIES. THE INFORMATION CULLED OUT F ROM THE RELEVANT SEIZED DOCUMENTS LED THE AO TO BELIEVE THA T THE ASSESSEE HAD TAKEN ACCOMMODATION ENTRY FROM M/S SUNNY CAST & FORGE LTD. AMOUNTING TO RS. 4,90,000/- THROUGH CHEQUE NO. 066964 ON 17.10.2006. SINCE THE ASSESSMENT FOR THE RELEVANT A SSESSMENT YEAR HAD BEEN COMPLETED U/S 143(1) OF THE ACT WHERE IN THE MATTER RELATING TO THE SHARE CAPITAL SHARE PREMIUM SHARE APPLICATION MONEY ETC. HAD NOT BEEN VERIFIED, THE A O PROCEEDED TO REOPEN THE CASE OF THE ASSESSEE U/S 148 OF THE ACT. SUBSEQUENTLY, THE AO COMPLETED THE REASSESSMENT U/S 147 /143(3) O F THE ACT AT THE RETURNED INCOME. IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 3 2.1 THEREAFTER, THE LD. PR.CIT ISSUED N OTICE U/S 263 OF THE ACT ON 23.1.2017 WHEREIN THE ASSESSEE WAS ASKED TO SHOW CAUSE AS TO WHY THE REASSESSMENT ORDER SHOULD NOT B E SET ASIDE AS THE AO HAD FAILED TO EXAMINE THE SEIZED MATERIAL AND HAD ALSO FAILED TO TAX THE AMOUNT OF RS. 4,90,000/- AS UNEXP LAINED CREDIT SINCE THE AMOUNT HAD BEEN RECEIVED THROUGH ONE SHRI Y. K. GUPTA. THE LD. PR. CIT ALSO NOTED THAT THE RELEVANT COPIES OF THE SEIZED MATERIAL RELATING TO THE ASSESSEE WERE NOT G IVEN TO THE ASSESSEE. IT WAS THE CONTENTION OF THE ASSESSEE BEF ORE THE LD. PR. CIT THAT THE ASSESSEE HAD NOT RECEIVED ANY FRESH SH ARE APPLICATION MONEY OR SHARE CAPITAL DURING THE YEAR AND THAT THE AO HAD ALSO EXAMINED THIS ISSUE DURING THE PROCEEDI NGS U/S 148 OF THE ACT AND HAD FOUND NOTHING WRONG. 2.2 HOWEVER, THE LD. PR. CIT WAS OF THE OPINION THAT THE ASSESSEE WAS SHOWN AS A BENEFICIARY IN THE DOCUMENT S SEIZED FROM SHRI SURENDER JAIN AND SHRI VIRENDER JAIN GROU P OF CASES AS WAS EVIDENT FROM SEIZED MATERIAL ANNEXURE A-62 P AGE 17 WHEREIN, ALONG WITH THE NAME OF THE ASSESSEE COMPAN Y, THE NAME OF SHRI Y.K. GUPTA WAS MENTIONED. THE LD. PR. CIT A LSO NOTED THAT THE CHEQUE NUMBER MENTIONED IN THE SEIZED MATE RIAL WAS FOUND TO BE CREDITED IN THE BANK ACCOUNT OF THE ASS ESSEE IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 4 COMPANY. THE LD. PR. CIT ALSO NOTED THAT THE EVIDEN CE OF CASH DEPOSITS OF RS. 4,90,000/- AGAINST THE NAME OF SHRI Y.K. GUPTA WAS MENTIONED AT ANNEXURE A-113 PAGE 20. THE LD. P R. CIT NOTED THAT IN VIEW OF THIS, THE ORDER PASSED BY THE AO WAS PASSED WITHOUT CONSIDERING THE RELEVANT SEIZED MATERIAL WH ICH SHOWED THAT THE CHEQUES HAD BEEN ISSUED IN LIEU OF CASH RE CEIPTS. THE LD. PR. CIT WENT ON TO HOLD THAT THE REASSESSMENT ORDER WAS ERRONEOUS IN SO FAR AS IT WAS PREJUDICIAL TO THE IN TEREST OF THE REVENUE AND, THEREFORE, THE SAME DESERVED REVISION. THE ORDER OF THE AO WAS SET ASIDE WITH A DIRECTION TO THE AO TO EXAMINE THE SEIZED MATERIAL, CONFRONT THE ASSESSEE WITH THE SAM E AND, THEREAFTER, PASS A FRESH ORDER. 2.3 AGGRIEVED BY THIS ORDER PASSED U/S 263 OF THE ACT, THE ASSESSEE IS NOW BEFORE THE TRIBUNAL CHALLENGING THE ORDER PASSED U/S 263 OF THE ACT. 3.0 THE LD. AUTHORISED REPRESENTATIVE (AR) S UBMITTED THAT EARLIER THE ASSESSEES CASE WAS REOPENED U/S 147/14 8 OF THE ACT ON THE SAME ISSUE AND SINCE THE AO HAD MADE PROPER VERIFICATION AND INQUIRY AND HAD, THEREAFTER, HELD THAT THE AMOU NT OF RS. 4,90,000/- PERTAINED TO SALE OF OLD STOCK OF RS. 5 LAC FOR AN IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 5 AMOUNT OF RS. 4,90,000/-, THERE WAS NO JUSTIFICATIO N FOR REVISING THE ORDER U/S 263 OF THE ACT. IT WAS SUBMITTED THAT DURING THE COURSE OF REASSESSMENT PROCEEDINGS THE ASSESSEE COM PANY HAD SUBMITTED THE SUPPORTING DOCUMENTS IN RESPECT OF TR ANSACTION OF SALE OF SHARES WHICH WERE CONFIRMED BY M/S. SUNNY C AST & FORGE LTD. (WHOSE NAME WAS APPEARING IN THE SEIZED DOCUME NTS). IT WAS ALSO SUBMITTED THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO HAS ASKED THE ASSESSEE REGARDING SEIZED MATE RIAL WHICH WAS DULY EXPLAINED AND THEREAFTER NO ADDITION WAS M ADE BY THE AO. THE LD. AR SUBMITTED THAT THE OBSERVATION OF TH E LD. PR. CIT THAT THE AO HAD NOT CONFRONTED THE ASSESSEE WITH TH E SEIZED MATERIAL AND HAD NOT EXAMINED THE SEIZED MATERIAL W AS IN FACT INCORRECT. THE LD. AR DREW OUR ATTENTION TO AN AFFI DAVIT OF THE ASSESSEE WHICH WAS FILED BEFORE THE TRIBUNAL ON 6.9 .2018 WHEREIN THE CHARTERED ACCOUNTANT APPEARING ON BEHALF OF THE ASSESSEE HAS DEPOSED THAT ORAL INQUIRIES AND SUBMISSIONS PER TAINING TO IMPUGNED AMOUNT OF RS. 4,90,000/- HAD BEEN MADE AT THE TIME OF THE REASSESSMENT PROCEEDINGS. THE LD. AR ALSO DR EW OUR ATTENTION TO COPY OF THE ORDER SHEET ENTRY DATED 9. 3.2015 WHEREIN IT HAS BEEN MENTIONED THAT NOTICE U/S 133(6) WAS I SSUED AND ORDER SHEET ENTRY DATED 26.3.2015 WHEREIN IT HAS BE EN MENTIONED IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 6 THAT REPLY IN RESPONSE TO NOTICE U/S 133(6) WAS RE CEIVED. IT WAS SUBMITTED THAT M/S. NEWAGE CONCEPTS INDIA PVT. LTD. HAD RESPONDED TO THE NOTICE ISSUED U/S 133(6) OF THE AC T AND HAD CONFIRMED THE TRANSACTION AND, THEREFORE, NO ADDITI ON WAS MADE BY THE AO. THE LD. AR ALSO SUBMITTED THAT SHRI Y.K. GUPTA WAS NOT KNOWN TO THE ASSESSEE AND, THEREFORE, HIS NAME COULD NOT BE LINKED TO THE ASSESSEE. THE LD. AR SUBMITTED THAT, ON THE FACTS OF THE CASE, THE ORDER PASSED U/S 263 DESERVED TO BE Q UASHED. 4.0 IN RESPONSE, THE LD. CIT (DR) SUBMITTED THAT T HE BENCH HAD DIRECTED THE DEPARTMENT ON AN EARLIER OCCASION TO FILE A COUNTER AFFIDAVIT IN RESPONSE TO THE AFFIDAVIT FILE D BY THE ASSESSEE AND THE SAME HAS BEEN RECEIVED. IT WAS SUBMITTED TH AT IT HAS BEEN SUBMITTED BY THE AO IN THE COUNTER AFFIDAVIT T HAT THERE WAS NOTHING IN THE ORDER SHEET ENTRIES, THE QUESTIONNAI RE ISSUED IN THE REASSESSMENT PROCEEDINGS OR EVEN IN THE ASSESSE ES REPLIES FILED DURING THE RE-ASSESSEMENT PROCEEDINGS WHICH W OULD INDICATE THAT THE AO HAD CONFRONTED THE ASSESSEE WITH ANY OF THE SEIZED MATERIAL. IT WAS SUBMITTED THAT IT HAS BEEN AVERRED IN THE COUNTER AFFIDAVIT THAT THE CONTENTION OF THE ASSESSEE THAT THE AO HAD SHOWED HIMSELF SOME SEIZED PAPERS HAD NO BASIS AT A LL AND WAS MISLEADING. THE LD. CIT (DR) ALSO SUBMITTED THAT TH E IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 7 SUBMISSIONS OF THE ASSESSEE HAD NOT CREDIBILITY AND WAS NOT ACCEPTABLE TO THE DEPARTMENT. FURTHER, THE LD. CIT (DR) ALSO SUBMITTED THAT THE ITAT DELHI BENCH HAD DECIDED THE ISSUE ON IDENTICAL FACTS AGAINST THE ASSESSEE/S IN THE FOLLO WING CASES:- 1) M/S. SURYA JYOTI SOFTWARE PVT. LTD. VS. PCIT IN ITA NO. 2158/DEL/2017 VIDE ORDER DATED 25.10.2017 2) SURYA FINANCIAL SERVICES LTD. VS. PCIT IN ITA NO. 2915/DEL/ 2017 VIDE ORDER DATED 8 TH JANUARY, 2018 3) SHANKER TRADEX PVT. LTD. VS. PR. CIT IN ITA NO. 2999/DEL/2017 VIDE ORDER DATED 16.4.2018 4) SHRI SAI CITY PROMOTERS AND DEVELOPERS PVT. LTD. VS . PR. CIT IN ITA NO. 6905/DEL/2017 VIDE ORDER DATED 14.1.2019 5) SURYA IRRIGATION PRIVATE LIMITED VS. PR. CIT IN IT A NO. 2182/DEL/2017 VIDE ORDER DATED 14.1.2019 6) M/S. SNB ENTERPRISES PVT. LTD. VS. PR. CIT IN ITA N O. 2544/DEL/2017 VIDE ORDER DATED 14.1.2019 7) SSE COMMODITIES PVT. LTD. VS. PR. CIT IN ITA NO. 2544/DEL/2017 VIDE ORDER DATED 14.1.2019 IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 8 4.1 THE LD. CIT (DR) SUBMITTED THAT IN ALL THE ABOVE CASES, REVISION BY THE PR. CIT WAS UPHELD ON THE GROUND TH AT THOUGH THE ASSESSMENT HAS BEEN REOPENED U/S 148 OF THE ACT ON THE ISSUE OF ACCOMMODATION ENTRIES TAKEN FROM SHRI S.K. JAIN GRO UPS OF CASES, THE AO HAD NOT EXAMINED THE SEIZED MATERIAL (IN THE FORM OF ACCOUNT BOOKS OR BOOKS CONTAINING THE DETAILS OF CHEQUES ISSUED BY SUCH CONCERNS). THE LD. CIT (DR) FURTHER SUBMITTED THAT WHILE DISMISSING THE ASSESSEES APPEALS IN THE SE CASES, THE TRIBUNAL HAD NOTED THAT THE APPRAISAL REPORT ALONG WITH THE SCANNED COPIES OF SEIZED MATERIAL SENT BY THE INVES TIGATION WING TO THE AO HAD NOT BEEN LOOKED INTO BY THE AO NOR HA D BEEN EXAMINED BY HIM DURING THE COURSE OF REASSESSMENT P ROCEEDINGS AND, THEREFORE, THE ACTION U/S 263 OF THE ACT WAS J USTIFIED. 5.0 WE HAVE HEARD THE RIVAL SUBMISSIONS AND HAVE P ERUSED THE MATERIAL ON RECORD. WE FIND THAT LD. PR. CIT, IN EXERCISE OF HIS REVISIONARY JURISDICTION UNDER SECTION 263 OF THE A CT, FROM THE EXAMINATION OF RECORDS BEFORE HIM, HAS NOTED THAT T HOUGH THE ASSESSMENT WAS REOPENED UNDER SECTION 148 OF THE AC T ON THE ALLEGATION OF ACCOMMODATION ENTRY TAKEN FROM SHRI S .K. JAIN GROUP OF CASES, WHICH WERE SUBJECTED TO SEARCH ON 1 4/9/2010 BY THE INVESTIGATION WING, THE ASSESSING OFFICER HAD N OT EXAMINED IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 9 THE SEIZED MATERIAL IN THE FORM OF CASH BOOK AND BO OKS CONTAINING THE DETAILS OF CHEQUES ISSUED BY SUCH CO NCERNS SEIZED FROM THE PREMISES OF SHRI S.K. JAIN DURING THE COUR SE OF SEARCH WHICH INDICATED ACCOMMODATION ENTRY PERTAINING TO A SSESSEE ALSO. THE LD. PR. CIT FURTHER NOTED THAT AN APPRAIS AL REPORT ALONG WITH SCANNED COPY OF SEIZED MATERIAL WAS SENT BY TH E INVESTIGATION WING TO ALL THE ASSESSING OFFICERS TH ROUGH THEIR RESPECTIVE CITS, WHICH HAS NEITHER BEEN LOOKED INTO BY THE ASSESSING OFFICER NOR HAS BEEN EXAMINED BY HIM DURI NG THE COURSE OF RE-ASSESSMENT PROCEEDINGS. ACCORDINGLY, T HE LD. PR. CIT ISSUED A SHOW CAUSE NOTICE UNDER SECTION 263 OF THE ACT, THE CONTENTS OF WHICH HAVE BEEN INCORPORATED BY HIM AT PAGES 2 AND 3 OF THE IMPUGNED ORDER, WHEREIN HE HAS SPECIFICALL Y BROUGHT OUT THAT THE ASSESSING OFFICER HAD FAILED TO CONSIDER T HE RELEVANT SEIZED MATERIAL PERTAINING TO THE ASSESSEE-COMPANY, WHICH WAS EVIDENT FROM 'ANNEXURE A-62, PAGE 17 OF THE SEIZED MATERIAL, WHEREIN THERE IS A CATEGORICAL MENTION THAT AN AMOU NT OF RS. 4,90,000/- WAS TAKEN BY THE THROUGH CHEQUE NO. 0669 64 DATED 17/10/2006 THROUGH SHRI Y.K. GUPTA WHICH WAS FOUND TO BE CREDITED IN THE BANK ACCOUNT OF THE ASSESSEE AND WA S ALSO APPEARING IN ANNEXURE A-113, PAGE 20. IT IS SEEN TH AT THE LD. PR. IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 10 CIT, AFTER CONSIDERING THE ENTIRE GAMUT OF FACTS, M ATERIAL ON RECORD AS WELL AS THE SUBMISSIONS MADE BY THE ASSES SEE, HAS NOTED THAT MANY INCRIMINATING DOCUMENTS WERE FOUND DURING THE COURSE OF INVESTIGATION AND SEARCH & SEIZURE ACTION IN THE CASE OF SHRI S.K. JAIN GROUP WHICH WAS SEIZED DURING THE CO URSE OF SEARCH BY THE INVESTIGATION WING ON 14/9/2010. HE H AS FURTHER NOTED THAT THESE SEIZED PAPERS CLEARLY REVEAL VARIO US ACCOMMODATION ENTRIES PROVIDED BY SUCH COMPANIES TO VARIOUS BENEFICIARIES. THE APPRAISAL REPORT WAS FORWARDED B Y THE INVESTIGATION WING IN THE MONTH OF MARCH, 2013 TO T HE THEN CIT- III IN HARD COPY AND VARIOUS OTHER SEIZED MATERIALS RUNNING INTO THOUSANDS OF PAGES WERE SCANNED AND SOFT COPIES OF THE RELEVANT SEIZED MATERIALS WERE SENT TO THE JURISDICTIONAL CO MMISSIONERS AND THEN TO THE ASSESSING OFFICERS. THE RELEVANT EX TRACTS OF CERTAIN SEIZED DOCUMENTS HAVE ALSO BEEN SCANNED AND REPRODUCED BY THE LD. PR. CIT IN THE IMPUGNED AT PA GES 7 AND 8 OF HIS ORDER. HOWEVER, THE ASSESSMENT ORDER, WHICH HAS SINCE BEEN REVISED BY THE IMPUGNED ORDER, MAKES ONLY A RE FERENCE TO THE APPRAISAL REPORT BUT DOES NOT STATE WHETHER THE RELEVANT SEIZED MATERIAL WAS EXAMINED BY HIM OR WHETHER THE ASSESSEE WAS EVER CONFRONTED WITH THE SEIZED DOCUMENTS. THE ORDER SHEET IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 11 ENTRIES, RELIED UPON BY THE ASSESSEE, ALSO FAIL TO LEAD US TO REACH A CONTRARY CONCLUSION. THE FACT OF THE MATTER REMAINS THAT THE ASSESSEES NAME FIGURED IN THE LIST OF BENEFICIARIE S, AS CULLED OUT FROM THE SEIZED DOCUMENTS. IT IS ALSO UNDISPUTED TH AT THE CHEQUE NUMBER/AMOUNT MENTIONED IN THE SEIZED DOCUMENTS WAS FOUND DULY CREDITED IN THE BOOKS OF ACCOUNTS OF THE ASSES SEE. HOWEVER, THE RE-ASSESSMENT ORDER, WHICH HAS SINCE BEEN REVIS ED BY THE IMPUGNED ORDER, MISERABLY FAILS IN BRINGING TO LIGH T AS TO WHETHER OR NOT THESE ASPECTS WERE EXAMINED BY THE AO. THUS, EVIDENTLY, THE AO HAS FAILED TO MAKE THE ENQUIRY ON THE ISSUE FOR WHICH THE ASSESSEES CASE WAS REOPENED. IN VIEW OF THE FACTS AND CIRCUMSTANCES, WE ARE OF THE CONSIDERED OPINION THA T ASSESSING OFFICER DID NOT EXAMINE THE RELEVANT SEIZED MATERIA L DESPITE THE FACT THAT ENTRIES IN THE SEIZED MATERIAL SHOWED THA T ASSESSEE WAS ALSO ONE OF THE BENEFICIARIES OF THE ACCOMMODATION ENTRIES GIVEN BY THE CONCERNS OF S.K. JAIN GROUP. THE ASSESSING O FFICER WAS MAINLY TRYING TO VERIFY THE EXISTENCE OF THE PARTIE S, RATHER THAN MAKING ENQUIRIES REGARDING THE GENUINENESS OF THE T RANSACTIONS AND AS TO WHETHER CHEQUE WAS ISSUED IN LIEU OF CASH OR NOT AS WAS APPEARING IN THE SEIZED MATERIAL. FROM THE PERU SAL OF THE CASE RECORDS OF THE ASSESSEE FOR THE RELEVANT ASSES SMENT YEAR, IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 12 THERE IS NOTHING ON RECORD TO SHOW THAT THE ASSESSI NG OFFICER HAS EVER CONFRONTED THE ASSESSEE ON SUCH SEIZED DOCUMEN TS AND HAD THE ASSESSING OFFICER EXAMINED THE SEIZED MATERIAL, HE SHOULD HAVE MADE SOME NOTING EITHER IN THE ORDER SHEET OR IN THE QUESTIONNAIRE ISSUED TO THE ASSESSEE OR ANY KIND OF REFERENCE WOULD HAVE BEEN MADE IN THE SUBMISSIONS MADE BY THE ASSESSEE BEFORE THE ASSESSING OFFICER. ACCORDINGLY, IT IS OU R CONSIDERED VIEW THAT THE LD. PR. CIT HAS RIGHTLY SET ASIDE THE RE-ASSESSMENT ORDER ON THE GROUND THAT THE ASSESSING OFFICER HAS NOT MADE ANY PROPER VERIFICATION/ENQUIRIES AND, THEREFORE, THE S AID ASSESSMENT ORDER IS DEEMED TO BE ERRONEOUS AND INSOFAR AS PREJ UDICIAL TO THE INTEREST OF THE REVENUE IN TERMS OF AMENDED PROVISI ONS INSERTED IN SECTION 263 OF THE ACT BY WAY OF EXPLANATION 2. THE PR. CIT HAS AMPLY DEMONSTRATED IN HIS IMPUGNED ORDER THAT THIS ISSUE WAS NEITHER ENQUIRED INTO NOR WAS VERIFIED BY THE ASSES SING OFFICER ONCE THE INFORMATION AND THE MATERIAL IN HARD COPY AND IN FORM OF CD WAS MADE AVAILABLE TO HIM. THE AO SHOULD HAVE VERIFIED THE GENUINENESS OF THE TRANSACTION AND ALSO SHOULD HAVE CARRIED OUT ADEQUATE ENQUIRY TO COME TO A LOGICAL CONCLUSIO N THAT EITHER THERE IS NO ACCOMMODATION ENTRY AND THE CONTENTS FO UND QUA THE ASSESSEE BEING ONE OF THE BENEFICIARY OF THE ACCOMM ODATION ENTRY IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 13 IN THE BOOKS OF ACCOUNT OF THE CONCERNS OF S.K. JAI N GROUP ARE FALSE OR BOGUS; OR ASSESSEE HAD AMPLY DEMONSTRATED AND SUBSTANTIATED BEFORE THE AO REGARDING THE GENUINENE SS OF THE TRANSACTION OF THE ACCOMMODATION ENTRY. IN ABSENCE OF SUCH A MANDATE WHICH WAS CAST UPON THE AO, WE ARE OF THE O PINION THAT THE ASSESSMENT ORDER IS NOT ONLY ERRONEOUS BUT ALSO PREJUDICIAL TO THE INTEREST OF REVENUE, AS THE ISSUE DEFINITELY RE QUIRED PROPER ENQUIRY AND VERIFICATION BY THE AO. ONCE ADEQUATE O R PROPER ENQUIRY HAS NOT BEEN DONE, THEN IN TERMS OF EXPLANA TION 2 INSERTED IN SECTION 263 OF THE ACT BY THE FINANCE A CT, 2015, W.E.F. 1.6.2015, THE ASSESSMENT ORDER IS DEEMED TO BE ERRO NEOUS IN SO FAR AS IT IS PREJUDICIAL TO THE INTEREST OF REVENUE . 5.1 WE ALSO NOTE THAT THE PRESENT CASE IS SQUARELY COVERED BY THE DECISION OF THE ITAT, 'G' BENCH, PASSED IN I TA NO. 2158/DEL/2017 (AY 2009-10) IN THE CASE OF SURYA JYO TI SOFTWARE PVT. LTD. VS. PR. CIT, WHICH WAS PASSED ON IDENTICA L SET OF FACTS. WE FURTHER NOTE THAT THE PRESENT CASE IS ALSO COVER ED AGAINST THE ASSESSEE BY THE JUDGMENT OF THE HON'BLE SUPREME COU RT OF INDIA IN THE CASE OF DENIEL MERCHANTS PVT. LTD. VS. ITO ( APPEAL NO. 2396/2017) DATED 29.11.2017, WHEREIN THE HON'BLE SU PREME COURT OF INDIA HAS DISMISSED THE SLPS IN CASES WHER E THE AO DID IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 14 NOT MAKE ANY PROPER INQUIRY WHILE MAKING THE ASSESS MENT AND ACCEPTED THE EXPLANATION(S) OF THE ASSESSEE(S) INSO FAR AS RECEIPT OF SHARE APPLICATION MONEY WAS CONCERNED. 5.2 IN THE BACKGROUND OF OUR AFORESAID OBSERVATION S AND RESPECTFULLY FOLLOWING THE PRECEDENTS, AS AFORESAID , WE HOLD THAT THE LD. PR. CIT HAS RIGHTLY EXERCISED HIS JURISDICT ION UNDER SECTION 263 OF THE ACT IN SETTING ASIDE THE ORDER O F THE ASSESSING OFFICER BEING ERRONEOUS IN SO FAR IT IS PREJUDICIAL TO THE INTEREST OF THE REVENUE. ACCORDINGLY, WE CONFIRM THE ORDER OF T HE LD. PR. CIT AND DISMISS THE GROUNDS RAISED BY THE ASSESSEE BEFO RE US. 6.0 IN THE FINAL RESULT THE APPEAL OF THE ASSESSEE STANDS DISMISSED. PRONOUNCED IN OPEN COURT ON 30 TH DECEMBER, 2019. SD/- SD/- (N.K.BILLAIYA) (SUDHANSHU SRIVASTAVA ) ACCOUNTANT MEMBER JUDICIAL MEMBE R DATED: 30/12/2019 VEENA COPY FORWARDED TO IT A NO. 2975/DEL/2017 SHIV SHAKT I CREATIONS PVT. LTD. VS PR.CIT 15 1. APPLICANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI