Esha Strips P.Ltd, Faridabad V. ITO, Ward-8(3), New Delhi

ITA 4689/DEL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 8399 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 25-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Reopening of assessment; Bogus purchase; Difference of opinion; Accommodation entries; Change of opinion; Reassessment proceedings
• Section: 133(6); 147; 148; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC NEW DELHI BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER I.T.A. NO.4689/DEL/2018 ASSESSMENT YEAR: 2009-10 ESHA STRIPS PVT. LTD., B-171, NEHRU GROUND, NIT, FARIDABAD, HARYANA. V. ITO, WARD-8(3), NEW DELHI. TAN/PAN: AABCE 2905N (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI ASHWANI KUMAR, CA RESPONDENT BY: SHRI S.L. ANURAGI, SR.D.R. DATE OF HEARING: 03 12 2018 DATE OF PRONOUNCEMENT: 01 01 2019 O R D E R THIS APPEAL BY THE ASSESSEE HAS BEEN DIRECTED AGAIN ST THE ORDER OF LD. CIT(A)-III, DELHI DATED 2 ND MAY, 2018 FOR THE ASSESSMENT YEAR 2009-10, CHALLENGING THE REOPENING OF ASSESSMENT U/S.148 OF THE IT ACT, ADDITION OF RS.18 ,00,000/- ON ACCOUNT OF SHARE CAPITAL AND PREMIUM U/S.68 OF THE IT ACT AND ADDITION OF RS.36,000/- ON ACCOUNT OF UNEXPLAINED E XPENDITURE FOR OBTAINING THE ACCOMMODATION ENTRY. 2. I HAVE HEARD THE LEARNED REPRESENTATIVE OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. 3. BRIEFLY, THE FACTS OF THE CASE ARE THAT RETURN S HOWING INCOME OF RS.5,47,858/- FOR ASSESSMENT YEAR UNDER APPEAL W AS FILED BY THE ASSESSEE ON 4 TH SEPTEMBER, 2009. SUBSEQUENTLY, CERTAIN INFORMATION WAS RECEIVED FROM INVESTIGATION WING OF THE INCOME ITA NO.4689/DEL/2018 2 TAX DEPARTMENT WITH REGARD TO FINANCIAL TRANSACTION S ENTERED BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION. O N EXAMINING THE SAID INFORMATION VIS-A-VIS THE RECORD OF THE AS SESSEE AND AFTER DUE APPLICATION OF MIND, THE REASONS WERE RECORDED BY THE ASSESSING OFFICER FOR INITIATING PROCEEDINGS U/S.14 7/148 OF THE INCOME TAX ACT. THE NOTICE WAS SERVED UPON ASSESSEE ON 30 TH MARCH, 2016. THE ASSESSEE FILED A REPLY THAT ORIGIN AL RETURN FILED U/S.139(1) MAY BE TREATED AS RETURN HAVING FILED IN RESPONSE TO THE NOTICE U/S.148 OF THE IT ACT. THE ASSESSEE FILE D OBJECTIONS TO THE ISSUE OF NOTICE U/S.148 OF THE IT ACT WHICH WAS DISPOSED OF BY THE ASSESSING OFFICER. THE MAIN GIST OF THE REASON FOR OBJECTION WAS THAT IN ASSESSMENT YEAR 2004-05 AND 2005-06 NOT ICES U/S.148 WERE ISSUED ON THE SAME INFORMATION GIVEN B Y THE INVESTIGATION WING AND AFTER VERIFICATION RETURNED INCOME WAS ACCEPTED VIDE ORDER PASSED U/S.143(3)/147 OF THE IT ACT. M/S. TAURAUS IRON AND STEEL COMPANY PVT. LTD. HAS INVEST ED AN AMOUNT OF RS.18,00,000/- IN THE SHARE CAPITAL OF AS SESSEE COMPANY WHICH ARE DULY REFLECTED IN THEIR BALANCE S HEET AND NO CASH WAS FOUND DEPOSITED IN THEIR ACCOUNTS BEFORE S UBSCRIPTION TO THE SHARES OF ASSESSEE COMPANY. THE ASSESSEE COM PANY HAS SOLD THE GOODS SO PURCHASED FROM M/S. MAA DURGA TRA DING CO. AND ACCOUNTED FOR SALE, FILED THE RETURN WITH SALES TAX DEPARTMENT AND IT IS NOWHERE ESTABLISHED THAT ASSES SEE-COMPANY RECEIVED CASH BACK AFTER ISSUE OF CHEQUES AGAINST T HE PURCHASES. THE ASSESSING OFFICER, HOWEVER, REJECTED THE OBJECT IONS OF THE ASSESSEE. THE ASSESSING OFFICER ISSUED NOTICES U/S. 133(6) TO THE INVESTOR COMPANY. HOWEVER, INSPECTOR HAS REPORTED T HAT NO WAS SUCH COMPANY IS FOUND EXISTING AT THE GIVEN ADDRESS . THE ITA NO.4689/DEL/2018 3 ASSESSING OFFICER ASKED THE ASSESSEE TO PRODUCE PRI NCIPAL OFFICER OF M/S. TAURAUS IRON AND STEEL CO. PVT. LTD. FOR VE RIFYING THE GENUINENESS, IDENTITY AND CREDITWORTHINESS OF THE T RANSACTIONS. THE ASSESSEE, HOWEVER, FILED COPY OF SHARE APPLICAT ION FORM, CONFIRMATION GIVEN BY THE INVESTOR COMPANY, COPY OF BANK STATEMENT OF THE INVESTOR COMPANY ALONG WITH COPY O F BALANCE SHEET, COPY OF BALANCE SHEET FILED WITH THE REGISTR AR OF COMPANIES AND COPY OF THE COMPANY MASTER DATA AS PER RECORD OF THE ROC TO PROVE THE IDENTITY OF THE INVESTOR, THEIR CREDIT WORTHINESS AND GENUINENESS OF THE TRANSACTIONS. THE ASSESSING OFFI CER, HOWEVER, REJECTED THE CONTENTION OF THE ASSESSEE AND MADE TH E ADDITION OF RS.18,00,000/- U/S.68 OF THE IT ACT. THE ASSESSING OFFICER ALSO MADE ADDITION OF RS.36,000/- ON ACCOUNT OF UNEXPLAI NED EXPENDITURE INCURRED FOR OBTAINING ACCOMMODATION EN TRY. 4. THE ASSESSEE CHALLENGED THE INITIATION OF RE-ASS ESSMENT PROCEEDINGS OF THE ABOVE COMPANY BEFORE THE LD. CIT (A), THE WRITTEN SUBMISSION OF THE ASSESSEE IS REPRODUCED IN THE APPELLATE ORDER IN WHICH THE ASSESSEE EXPLAINED THAT REOPENIN G OF THE ASSESSMENT IS BAD IN LAW AND RELIED UPON THE DECISI ON OF HON'BLE DELHI HIGH COURT IN THE CASE OF PR.CIT VS. MEENAKSHI OVERSEAS (P.) LTD. (2017) 82 TAXMANN.COM 300. IT WAS SUBMITTED THAT ASSESSING OFFICER FORMED A REASON TO BE BASED ON TH E STATEMENT OF SHRI TARUN GOYAL WHEREIN THE NAME OF THE ASSESSE E COMPANY HAS NOWHERE BEEN MENTIONED, THEREFORE, PROCEEDINGS U/S.148 HAVE BEEN WRONGLY INITIATED. IT WAS ALSO SUBMITTED THAT ADDITION ON MERIT IS WHOLLY UNJUSTIFIED BECAUSE ASSESSEE HAS PROVED THE IDENTITY OF THE INVESTOR COMPANY, ITS CREDITWORTHIN ESS AND ITA NO.4689/DEL/2018 4 GENUINENESS OF THE TRANSACTIONS IN THE MATTER. HOWE VER, LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE. 5. I HAVE HEARD THE LEARNED REPRESENTATIVE OF BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. LEARN ED COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW. HE HAS REFERRED TO PAPER BOOK 15 WHICH IS REASONS RECORDED FOR REOPENING OF THE ASSESSMENT AN D SUBMITTED THAT MR. TARUN GOYAL DID NOT NAME THE ASSESSEE IN H IS STATEMENT FOR RECEIVING ANY ACCOMMODATION ENTRY, COPY OF STAT EMENT RECORDED BY INVESTIGATION WING ON 15 TH SEPTEMBER, 2008 IS FILED IN THE PAPER BOOK. HE TOO REFERRED TO THE BALANCE-S HEET OF THE INVESTOR COMPANY IN THE PAPER BOOK AND ALSO SUBMITT ED THAT CONFIRMATION WAS FILED BY THE INVESTOR COMPANY. COP Y OF THE BANK STATEMENT IS FILED IN THE PAPER BOOK TO SHOW THAT N O CASH WAS DEPOSITED IN THEIR ACCOUNT BEFORE MAKING INVESTMENT IN ASSESSEES COMPANY. HE HAS SUBMITTED THAT THE SAME INVESTOR COMPANY M/S. TAURAUS IRON AND STEEL CO. PVT. LTD. W AS REFERRED TO IN THE CASE OF M/S. A.P. REFINERY PVT. LTD. VS. ADDITIONAL COMMISSIONER OF INCOME TAX, REPORTED IN 45 ITR (TRI B.) 724 (CHANDIGARH) IN WHICH THE REOPENING OF THE ASSESSME NT WAS QUASHED AS WELL AS THE ADDITION ON MERIT HAVE BEEN DELETED. HE, THEREFORE, SUBMITTED THAT ISSUE IS COVERED IN FAVOU R OF THE ASSESSEE BY ABOVE DECISION OF THE TRIBUNAL. 6. ON THE OTHER HAND, LEARNED DR STRONGLY RELIED UP ON THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT REOPENING IS JUSTIFIED IN THE MATTER AND ADDITION WAS RIGHTLY MAD E AGAINST THE ITA NO.4689/DEL/2018 5 ASSESSEE. HE HAS RELIED UPON SEVERAL DECISIONS IN H IS WRITTEN SUBMISSION WHICH IS TAKEN ON RECORD. 7. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. IT IS W ELL SETTLED LAW THAT VALIDITY OF THE RE-ASSESSMENT PROCEEDINGS HAS TO BE JUDGED WITH REFERENCE TO THE REASONS RECORDED FOR REOPENIN G OF THE ASSESSMENT. THE ASSESSEE HAS FILED COPY OF THE REAS ONS FOR REOPENING OF THE ASSESSMENT AT PAGES 15 TO 17 OF TH E PAPER BOOK WHICH READS AS UNDER: REASON OF BELIEF TO ISSUE NOTICE U/S 148 OF THE I. T. ACT, 1961 IN THE CASE OF M/S. ESHA STRIPS PVT LTD (PAN-AABCE2905N) FOR A.Y. 2009-10 THE ASSESSEE COMPANY HAS E-FILED ITS RETURN OF INCO ME FOR A.Y. 2009- 10 ON 04.09.2009 AT AN INCOME OF RS. 5,47,858/-. TH E RETURN WAS PROCESSED ON 04.01.2011 AT THE RETURNED INCOME OF R S. 5,47,858/-. DURING THE YEAR THE ASSESSEE COMPANY HAD SHOWN TOTA L SALES/GROSS RECEIPTS OF RS. 2,16,41,822/-. PERUSAL OF RECORD REVEALS THAT THE ASSESSEE COMPANY WAS INCORPORATED ON 04.03.2004. AN INFORMATIVE LETTER D ATED 31.03.2009 FROM THE THEN ADDL. DIT (INV.), UNIT-IV, NEW DELHI WAS RECEIVED IN THE OFFICE OF THE THEN COMMISSIONER OF INCOME TAX, DELH I-IV, NEW DELHI WHICH WAS RECEIVED IN THE OFFICE OF THE THEN AO ON TRANSFERRED HAVING INFORMATION REGARDING BENEFICIARIES OF ACCOM MODATION ENTRIES PROVIDED BY SH. TARUN GOYAL, CA/DIRECTOR OF VARIOUS COMPANIES REGISTERED AND ADDRESSED AT HIS OFFICE PREMISES 13/ 34, WEA, ARYA SAMAJ ROAD, KAROL BAGH, NEW DELHI-110005 ON WHICH A SEARCH U/S 132 OF THE I.T. ACT, 1961 WAS CONDUCTED ON 15.09.20 08 BY THE INVESTIGATION WING. SH. TARUN GOYAL IN HIS STATEMEN T RECORDED ON OATH ACCEPTED THAT HE THROUGH ITS VARIOUS BOGUS COMPANIE S PROVIDED ACCOMMODATION ENTRIES. THIS FACT WAS ALSO ACCEPTED ON OATH BY THE DIFFERENT DIRECTORS OF THOSE BOGUS COMPANIES WHICH PROVIDED ITA NO.4689/DEL/2018 6 ACCOMMODATION ENTRIES. THOSE DIRECTORS WERE THE EMP LOYEES OF SH. TARUN GOYAL HAVING NO KNOWLEDGE ABOUT THE MODUS OF OPERANDI ADOPTED TO PROVIDE THE ACCOMMODATION ENTRIES NOR TH EY WERE HAVING ANY CONTROL OR KNOWLEDGE OF THE COMPANIES. THE CASH WERE DEPOSITED IN THE VARIOUS COMPANIES WHICH WAS ROTATED AND USED TO PROVIDE THE ACCOMMODATION ENTRIES TO THE OTHER BENEFICIARIES CO MPANIES. M/S ESHA STRIPS PVT. LTD. WAS ONE OF THE BENEFICIARY CO MPANY WHICH TOOK ACCOMMODATION ENTRIES OF RS. 18,00,000/- IN THE F.Y . 2008-09 RELEVANT TO A.Y. 2009-10 FROM M/S TAURAUS IRON & ST EEL COMPANY PVT. LTD RUN AND CONTROLLED INDIRECTLY BY SH. TARUN GOYA L THROUGH HIS OFFICE AT 13/34, WEA, ARYA SAMAJ ROAD, KAROL BAGH, NEW DEL HI-110005. TO VERIFY THIS TRANSACTION NOTICE U/S 133(6) OF THE I. T. ACT, 1961 WITH THE PRIOR APPROVAL OF PR. CIT-3, NEW DELHI WAS ISSUED T O M/S ESHA STRIPS PVT LTD. IN RESPONSE TO THE NOTICE THE ASSESSEE HAS FILED REPLY ON 23.03.2016 AND THE ASSESSEE HAS SUBMITTED THE LEDGE R ACCOUNT OF M/S TAURAS IRON & STEEL COMPANY FOR THE PERIOD 01.0 4.2008 TO 31.03.2009 AND BANK ACCOUNT STATEMENT OF M/S ESHA S TRIPS PVT LTD. IN THE LEDGER ACCOUNT OF M/S TAURAS IRON & STEEL CO MPANY THE ASSESSEE HAS SHOWN SHARE APPLICATION MONEY OF RS. 6 ,00,000/- WHEREAS IN THE BANK ACCOUNT STATEMENT THE ACCOUNT O F THE ASSESSEE HAS BEEN CREDITED BY RS. 18,00,000/-. (TWO ENTRIES OF RS.9,00,000 EACH ON 17.04.2008). ANOTHER LETTER WAS RECEIVED FROM ASSISTANT DIRECTOR OF INCOME TAX(LNV.)-LL, NEW CGO COMPLEX, N.H.IV, FARIDABAD, H ARYANA THROUGH INCOME TAX OFFICER, WARD 8(4), NEW DELHI ON 02.03.2 016 HAVING INFORMATION REGARDING ACCOMMODATION ENTRIES OF BOGU S PURCHASE THROUGH BILLS WITHOUT ANY DELIVERY OF GOODS BY SHRI VINOD GOYAL PROPRIETOR OF M/S MAA DURGA TRADING COMPANY. ON OAT H STATEMENT RECORDED BY THE ASSISTANT DIRECTOR OF INCOME TAX (I NV.)-II, FARIDABAD ON 21.01.2010 IN QUESTION NO. 5 SHRI VINOD GOYAL HA S ADMITTED THAT FIRM WAS ESTABLISHED IN 2006 AND CONTINUED TO 2008. THERE WERE NO ACTIVITIES DONE IN M/S MAA DURGA TRADING COMPANY. T HIS ITA NO.4689/DEL/2018 7 PROPRIETORSHIP FIRM WAS ONLY ESTABLISHED TO PROVIDE ACCOMMODATION ENTRIES THROUGH BOGUS BILLING AGAINST WHICH NO GOOD S WERE SUPPLIED. ON OATH STATEMENT SHRI VINOD GOYAL HAS ALSO ADMITTE D THAT HE RECEIVED THE PAYMENT THROUGH CHEQUES AGAINST THE BI LLS ISSUED AND WITHDREW THE CASH AND AFTER DEDUCTING THE COMMISSIO N, REMAINING CASH WAS GIVEN TO THE SAME PARTY FROM WHICH RECEIVE D CHEQUE AGAINST BOGUS BIILS. SHRI VINOD GOYAL HAS ALSO ADMITTED THA T THERE WAS NO SELLING/SUPPLY OF GOODS TO THESE PARTIES. THE MAIN CONTENTS OF THIS LETTER ARE REPRODUCED BELOW: M/S EASH STRIPS PVT LTD (PAN-AABCE2905N) HAS OBTAI NED ACCOMMODATION ENTRY OF BOGUS PURCHASE THROUGH M/S M AA DURGA TRADING CO. DURING THE FINANCIAL YEAR 2008-09 TOTAL QUANTITY OF RS. 5,73,558/- (APPROX.) HAS BEEN DIVER TED FROM PROFIT BY MEANS OF BOGUS PURCHASE' IN RESPONSE TO NOTICE U/S 133(6) THE ASSESSEE COMPA NY HAS ALSO SUBMITTED THE LEDGER ACCOUNT OF M/S MAA DURGA TRADI NG CO. FOR THE PERIOD 01.04.2008 TO 31.03.2009. IN THE LEDGER ACCO UNT ITS APPEAR THAT THE ASSESSEE COMPANY HAS MADE THE PAYMENT OF R S. 5,73,558/- TO MAA DURGA TRADING COMPANY ON 20.04.2008. AS PER BANK ACCOUNT STATEMENT OF HDFC BANK OF M/S ESHA STRIPS PVT LTD I T IS CLEAR THAT THE ASSESSEE HAS MADE THE PAYMENT OF RS. 5,73,558/- TO MAA DURGA TRADING COMPANY AGAINST PURCHASES. AS DISCUSSED ABOVE ENTRIES OF RS. 18,00,000/- FROM M/S TAURAUS IRON AND STEEL CO. PVT LTD IN THE SHAPE SHARE APPLICATIO N MONEY/SHARE PREMIUM AND DEBIT ENTRY OF RS. 5,73,558/- AGAINST B OGUS PURCHASES ARE ACCOMMODATION ENTRIES AVAILED FOR TAX EVASION O R IN OTHER WORDS INCOME TO THE EXTENT OF RS. 23,73,558/- ( 18,00,000 +5.73 555) HAS ESCAPED ASSESSMENT. IN VIEW OF ABOVE FACTS, I HAVE REASON TO BELIEF THA T THE INCOME OF RS. 23,73,558/- HAS ESCAPED OF ASSESSMENT. THEREFORE, I PROPOSE TO INITIATE PROCEEDINGS U/S 147 READ WITH SECTION 148 OF THE I.T. ACT. IT IS ITA NO.4689/DEL/2018 8 THEREFORE REQUESTED TO ACCORD APPROVAL FOR ISSUANCE OF NOTICE U/S 148 OF THE I.T. ACT AS PER SUB-SECTION (1) OF SECTION 1 51 OF THE I.T. ACT. PUT UP FOR YOUR KIND PERUSAL AND NECESSARY APPROVAL PLEASE. SD/- ITO, WARD 8(3), NEW DELHI 28.03.2016 7.1 THE ABOVE REASONS FOR REOPENING OF THE ASSESSME NT ARE BASED ON STATEMENT OF SHRI TARUN GOYAL RECORDED BY THE INVESTIGATION WING ON 15 TH SEPTEMBER, 2008 IN WHICH HE HAS ACCEPTED ON OATH THAT HE HAS PROVIDED ACCOMMODATION ENTRIES AND CASH WERE DEPOSITED IN VARIOUS COMPANIES WHICH WERE ROTATED AND USED TO PROVIDE THE ACCOMMODATION ENTRI ES TO OTHER BENEFICIARY COMPANIES. THE ASSESSEE WAS FOUND ONE O F THE BENEFICIARY COMPANIES WHICH TOOK ACCOMMODATION ENTR IES OF RS.18 LAC IN ASSESSMENT YEAR UNDER APPEAL FROM M/S. TAURAUS IRON AND STEEL CO. PVT. LTD. RUN AND CONTROLLED IND IRECTLY BY SHRI TARUN GOYAL. THE LD. COUNSEL FOR THE ASSESSEE REFER RED TO STATEMENT OF SHRI TARUN GOYAL, REFERRED TO IN THE R EASONS COPY OF WHICH IS FILED IN THE PAPER BOOK. LD. COUNSEL FOR T HE ASSESSEE RIGHTLY CONTENDED THAT NAME OF THE ASSESSEE COMPANY HAS NOWHERE BEEN MENTIONED TO WHOM ALLEGED ACCOMMODATIO N ENTRIES HAVE BEEN PROVIDED BY THE SAME PERSON. LD. COUNSEL FOR THE ASSESSEE ALSO REFERRED TO PAGE 49 OF THE PAPER BOOK WHICH IS BANK STATEMENT OF THE INVESTOR COMPANY M/S. TAURAUS IRON AND STEEL CO. PVT. LTD. TO SHOW THAT THE ASSESSEE HAS BEEN CR EDITED OF RS.18 LAC BY THE SAID COMPANY OF RS.9 LAC EACH ON 17 TH APRIL, 2008. PRIOR TO THAT THERE IS NO CASH DEPOSIT IN THE BANK ACCOUNT OF THE ITA NO.4689/DEL/2018 9 INVESTOR COMPANY FOR MAKING INVESTMENT IN SHARES OF ASSESSEE COMPANY. THE ASSESSEE FILED CONFIRMATION FROM THE I NVESTOR COMPANY, ITS BALANCE-SHEET AND OTHER DOCUMENTS TO S HOW THAT THE INVESTOR COMPANY IS ASSESSED TO TAX AND HAVE PA N AND THE AMOUNT WAS INVESTED THROUGH BANKING CHANNEL WHICH I S CONFIRMED AND THAT THE INVESTOR COMPANY HAS SHOWN T HE TRANSACTION WITH THE ASSESSEE IN THEIR BALANCE-SHEE T. THE INVESTOR COMPANY HAS SUFFICIENT CAPITAL WITH THEM TO MAKE IN VESTMENT IN ASSESSEE-COMPANY. THIS FACT CLEARLY SHOWS THAT THE ASSESSING OFFICER WITHOUT VERIFYING THE CONTENTS OF THE INFOR MATION RECEIVED FROM INVESTIGATION WING RECORDED THE REASONS FOR TH E REOPENING OF THE ASSESSMENT WITHOUT APPLYING HIS MIND. WHATEVER REASONS HAVE BEEN RECORDED FOR REOPENING OF THE ASSESSMENT WERE IN FACT INCORRECT. ITAT CHANDIGARH BENCH IN THE CASE OF AP REFINERY PVT. LTD. VS. ADDITIONAL CIT (SUPRA) CONSIDERED THE IDEN TICAL ISSUE IN WHICH ONE OF THE INVESTOR COMPANY CONTROLLED BY SHR I TARUN GOYAL WAS M/S. TAURAUS IRON AND STEEL CO. PVT. LTD. IN WHICH THE TRIBUNAL IN PARAGRAPHS 16 AND 18 OF THE ORDER HAS H ELD AS UNDER: 16. CONSIDERING THE ABOVE DISCUSSION, IT IS CLEAR THAT THE ASSESSING OFFICER MERELY ACTED ON SUSPICION AGAINST THE ASSES SEE. IT IS A MERE CASE OF CHANGE OF OPINION AND THE ASSESSING OFFICER HAS NOT EXAMINED ANY MATERIAL AGAINST THE ASSESSEE FOR REOPENING OF THE ASSESSMENT. THE ASSESSING OFFICER WAS HAVING NO SPECIFIC EVIDEN CE OR MATERIAL AGAINST THE ASSESSEE FOR REOPENING OF THE ASSESSMEN T. NO FRESH MATERIAL HAS BEEN BROUGHT ON RECORD TO JUSTIFY REOP ENING OF THE ASSESSMENT, THEREFORE, ASSESSING OFFICER HAS NOT VA LIDLY ASSUMED JURISDICTION UNDER SECTION 148 OF THE INCOME TAX AC T FOR REOPENING OF THE ASSESSMENT IN THE MATTER. THE DECISIONS RELIED UPON BY ID. DR ARE NOT APPLICABLE TO THE FACTS AND CIRCUMSTANCES OF THE CA SE. WE, ACCORDINGLY, ITA NO.4689/DEL/2018 10 SET ASIDE THE REOPENING OF THE ASSESSMENT AND QUASH THE IMPUGNED ORDERS UNDER SECTION 147/148 OF THE INCOME TAX ACT. ..................... 18. IN VIEW OF THE ABOVE, WE FIND THAT THE ISSUE ON MERIT IS ALSO COVERED IN FAVOUR OF THE ASSESSEE BY ORDER OF ITAT - CHANDIGARH BENCH IN THE CASE OF LOTUS INTEGRATED TAXPARKS (SUPRA) AN D AS SUCH, NO ADDITION COULD BE MADE AGAINST THE ASSESSEE. IN VIE W OF THE ABOVE FINDINGS AND DISCUSSION, WE SET ASIDE THE ORDERS OF THE AUTHORITIES BELOW AND QUASH THE REASSESSMENT PROCEEDINGS UNDER SECTION 148 OF THE INCOME TAX ACT, RESULTANTLY, ALL ADDITIONS MADE THEREIN STAND DELETED. 7.2 IT MAY BE ALSO NOTED HERE THAT THE ASSESSING OF FICER IN THE REASONS FOR REOPENING OF THE ASSESSMENT HAS ALSO ME NTIONED ABOVE INFORMATION REGARDING ACCOMMODATION ENTRIES O F BOGUS PURCHASES THROUGH BILLS WITHOUT ANY DELIVERY OF GOO DS BY M/S. MAA DURGA TRADING COMPANY. HOWEVER, IN THE ASSESSME NT ORDER NO SUCH ADDITION HAVE BEEN MADE BY THE ASSESSING OF FICER, BECAUSE NOTHING ADVERSE WAS FOUND AGAINST THE ASSES SEE. PAYMENT FOR PURCHASE COULD NOT BE REGARDED ESCAPED INCOME U/S.148 OF IT ACT. 7.3 CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, IT IS CLEAR THAT THE ASSESSING OFFICER WITHOUT VERIFYING AN INFORMATION AGAINST THE ASSESSEE MERELY ACTED ON SUSPICION AGAI NST ASSESSEE. THE ASSESSING OFFICER WITHOUT APPLICATION OF MIND R ECORDED THE REASONS FOR REOPENING OF ASSESSMENT. NO SPECIFIC MA TERIAL HAS BEEN BROUGHT ON RECORD TO JUSTIFY REOPENING OF THE A SSESSMENT, THEREFORE, ASSESSING OFFICER HAS NOT VALIDLY ASSUME D JURISDICTION U/S.148 OF THE IT ACT FOR REOPENING OF THE ASSESSME NT IN THE ITA NO.4689/DEL/2018 11 MATTER. THE DOCUMENTARY EVIDENCE FILED ON RECORD AL SO PROVED THAT ASSESSEE PROVED IDENTITY OF THE INVESTOR COMPA NY, ITS CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION IN THE MATTER. THERE WAS THUS NO JUSTIFICATION TO MAKE ANY ADDITION AGAINST THE ASSESSEE. NO EVIDENCE HAVE BEEN BROUGHT ON RECORD IF ASSESSEE PAID ANY AMOUNT AS COMMISSION ETC. FOR OBT AINING ANY ACCOMMODATION ENTRY. THE ISSUES ARE THEREFORE COVER ED BY ORDER OF ITAT CHANDIGARH BENCH IN THE CASE OF A.P. REFINE RY PVT. LTD. (SUPRA). THE DECISIONS CITED BY LD. D.R. IN THE WRI TTEN SUBMISSION WOULD NOT SUPPORT CASE OF THE REVENUE. IN VIEW OF T HE ABOVE DISCUSSION, I SET ASIDE THE ORDERS OF THE AUTHORITI ES BELOW AND QUASH THE REOPENING OF THE ASSESSMENT IN THE MATTER . THE ADDITIONS ON MERIT IS ALSO DELETED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 1 ST JANUARY, 2019. SD/- [BHAVNESH SAINI] JUDICIAL MEMBER DATED: 1 ST JANUARY, 2019