ITO, New Delhi V. M/s. Camboj Brothers Pvt. Ltd., New Delhi

ITA 4949/DEL/2010

• Counselvise Citation: 494920114 RSA 2010
• Duration Of Justice: 3 year(s) 9 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-08-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 12-08-2014
• Assessment Year: 2001-2002
• Appeal Filed On: 11-11-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS ASHIMA NEB
• Keywords: Reopening of assessment; Gift; Accommodation entries; Assessment record; Reassessment proceedings
• Section: 68; 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH B BB B : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG, JUDICIAL , JUDICIAL , JUDICIAL , JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO. .. .4281/DEL/2010 4281/DEL/2010 4281/DEL/2010 4281/DEL/2010 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2001 2001 2001 2001- -- -02 0202 02 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -3(4), 3(4), 3(4), 3(4), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S C M/S C M/S C M/S COMERO LEASING & FINANCIAL OMERO LEASING & FINANCIAL OMERO LEASING & FINANCIAL OMERO LEASING & FINANCIAL PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 24, SADHNA ENCLAVE, 24, SADHNA ENCLAVE, 24, SADHNA ENCLAVE, 24, SADHNA ENCLAVE, MALVIYA NAGAR, MALVIYA NAGAR, MALVIYA NAGAR, MALVIYA NAGAR, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. PAN : AAACC5698R. PAN : AAACC5698R. PAN : AAACC5698R. PAN : AAACC5698R. (APPELLANT) (RESPONDENT) ITA NO ITA NO ITA NO ITA NO.4949/DEL/2010 .4949/DEL/2010 .4949/DEL/2010 .4949/DEL/2010 ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : ASSESSMENT YEAR : 2001 2001 2001 2001- -- -02 0202 02 INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -3(2), 3(2), 3(2), 3(2), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. VS. VS. VS. VS. M/S CAMBOJ BROTH M/S CAMBOJ BROTH M/S CAMBOJ BROTH M/S CAMBOJ BROTHERS PVT.LTD., ERS PVT.LTD., ERS PVT.LTD., ERS PVT.LTD., B BB B- -- -217, YOJNA VIHAR, 217, YOJNA VIHAR, 217, YOJNA VIHAR, 217, YOJNA VIHAR, DELHI DELHI DELHI DELHI 110 092. 110 092. 110 092. 110 092. PAN : AAACC5649Q. PAN : AAACC5649Q. PAN : AAACC5649Q. PAN : AAACC5649Q. (APPELLANT) (RESPONDENT) APPELLANT BY : MRS. ASHIMA NEB, SR.DR. RESPONDENTS BY : SHRI V.P. GUPTA AND SHRI ANUNAV KUMAR, ADVOCATES. ORDER ORDER ORDER ORDER PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP PER G.D. AGRAWAL, VP : : : : THESE APPEALS BY THE REVENUE ARE DIRECTED AGAINST THE ORDER OF LEARNED CIT(A)-IV, NEW DELHI DATED 29 TH JULY, 2010 AND 7 TH SEPTEMBER, 2010 FOR THE AY 2001-02. 2. AT THE TIME OF HEARING BEFORE US, IT IS ADMITTED BY BOTH THE PARTIES THAT THE FACTS IN BOTH THE CASES ARE IDENTI CAL AND THEREFORE, IF ITA NO.4281/DEL/2010 IS CONSIDERED AND ADJUDICATED UPON, THE SAME WOULD BE APPLICABLE TO ITA NO.4949/DEL/2010. IN VI EW OF THE ABOVE, WE SHALL FIRST DEAL WITH ITA NO.4281/DEL/2010. ITA-4281 & 4949/D/2010 2 3. IN THIS APPEAL BY THE REVENUE, FOLLOWING GROUNDS ARE RAISED:- 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE ORDER OF THE LD.CIT(A) IS WRONG, PERVERSE, ILLEGAL AND AGAINST THE PROVISIONS OF LAW WHICH IS LIABLE T O BE SET ASIDE. 2. THE LD.CIT(A) HAS ERRED ON FACTS AND IN LAW IN H OLDING THAT RE-OPENING OF THE CASE U/S 147/148 WAS NOT VAL ID IN LAW, ESPECIALLY IN VIEW OF DECISION OF THE JURISDIC TIONAL HIGH COURT IN MIDLAND FRUIT AND VEGETABLES PRODUCTS (IND IA) LTD VS. CIT (1994) 208 ITR 266. 3. THE APPELLANT CRAVES LEAVE FOR RESERVING THE RIG HT TO AMEND, MODIFY, ALTER, ADD OR FOREGO ANY GROUND(S) O F APPEAL AT ANY TIME BEFORE OR DURING THE HEARING OF THIS APPEAL. 4. AT THE TIME OF HEARING BEFORE US, IT IS SUBMITTE D BY THE LEARNED DR THAT THE ASSESSING OFFICER HAD RECEIVED DEFINITE INFORMATION FROM THE DIRECTOR OF INCOME TAX (INVESTIGATION), NEW DEL HI WITH REGARD TO ACCOMMODATION ENTRIES BEING PROVIDED BY VARIOUS ENT RY OPERATORS. THE ASSESSEE WAS THE BENEFICIARY OF SUCH ACCOMMODAT ION ENTRIES. THAT DURING THE COURSE OF INVESTIGATION BY THE INVE STIGATION WING, THE SO CALLED CREDITORS HAVE ACCEPTED THAT THEY ARE ONL Y ENTRY PROVIDERS. THAT THE ASSESSING OFFICER HAS REOPENED THE ASSESSM ENT ON THE BASIS OF SPECIFIC INFORMATION WITH REGARD TO THE ACCOMMOD ATION ENTRIES TAKEN BY THE ASSESSEE, THE DETAILS OF WHICH ARE GIVEN IN THE REASONS RECORDED WHICH SHOWS COMPLETE DETAIL WITH REGARD TO THE DATE ON WHICH THE ENTRY IS RECEIVED, THE ACCOUNT FROM WHICH THAT ENTR Y IS RECEIVED, NAME AND BRANCH OF THE BANK AND THE AMOUNT. SHE, THEREF ORE, SUBMITTED THAT THE CIT(A) WRONGLY HELD THAT THE REOPENING OF ASSESSMENT WAS BAD IN LAW. IN SUPPORT OF HER CONTENTION, SHE RELIED U PON THE FOLLOWING DECISIONS OF HON'BLE JURISDICTIONAL HIGH COURT :- ITA-4281 & 4949/D/2010 3 (I) CIT VS. NOVA PROMOTERS AND FINLEASE (P) LTD. [201 2] 342 ITR 169 (DELHI). (II) A.G. HOLDINGS PVT.LTD. VS. ITO [2013] 352 ITR 364 (DELHI). 5. LEARNED COUNSEL FOR THE ASSESSEE, ON THE OTHER H AND, RELIED UPON THE ORDER OF THE LEARNED CIT(A) AND HE REFERRED TO THE REASONS RECORDED AND POINTED OUT THAT IN THE REASONS RECORDED, THE A SSESSING OFFICER SIMPLY REPRODUCED CERTAIN DETAILS RECEIVED FROM THE INVESTIGATION WING AND, WITHOUT ANY APPLICATION OF MIND, ISSUED NOTICE UNDER SECTION 148. HE REFERRED TO THE DETAILS AND POINTED OUT THAT ON FIVE OCCASIONS, THE SAME ENTRY HAS BEEN MENTIONED IN THE CHART TWICE AN D THE ASSESSING OFFICER ACCEPTED THE SAME AT THE FACE VALUE. THE A SSESSING OFFICER HAS NOT EVEN REFERRED TO THE ASSESSMENT RECORD WHICH IS AVAILABLE WITH HIM. THAT THE CIT(A) HAS PROPERLY APPRECIATED THE FACTS AFTER EXAMINING THE WHOLE RECORDS. THAT THE CIT(A) HAS A LSO MENTIONED THAT HE HAS EXAMINED THE STATEMENTS OF ALLEGED ENTRY PRO VIDERS. AT NO PLACE, IT HAS BEEN MENTIONED BY ANY OF THE PERSONS THAT THE ASSESSEE WAS THE BENEFICIARY OF THE ACCOMMODATION ENTRIES. HE, THEREFORE, SUBMITTED THAT THE ORDER OF LEARNED CIT(A) SHOULD B E SUSTAINED. IN SUPPORT OF HIS CONTENTION, HE RELIED UPON THE FOLLO WING DECISIONS OF HON'BLE JURISDICTIONAL HIGH COURT:- (I) CIT VS. SUREN INTERNATIONAL P.LTD. [2013] 357 ITR 24 (DELHI). (II) SIGNATURE HOTELS P.LTD. VS. ITO AND ANOTHER [2011 ] 338 ITR 51 (DELHI). 6. WE HAVE CAREFULLY CONSIDERED THE SUBMISSIONS OF BOTH THE SIDES AND PERUSED RELEVANT MATERIAL PLACED BEFORE US. TH E REASONS RECORDED BY THE ASSESSING OFFICER FOR ISSUING NOTICE UNDER S ECTION 148 READ AS UNDER:- ITA-4281 & 4949/D/2010 4 REASONS FOR ISSUING NOTICE U/S 148 IN THE CASE OF M/S COMERO LEASING & FINANCIAL PVT LTD FOR AY 2001-02 A REPORT ON ENQUIRIES MADE BY THE DIRECTORATE OF INCOME TAX (INVESTIGATION) NEW DELHI INTO ACCOMMODA TION ENTRIES GIVEN BY ENTRY OPERATORS HAS BEEN RECEIVED. THIS REPORT WAS RECEIVED IN THE OFFICE OF COMMISSIONER O F INCOME TAX, DELHI-I, NEW DELHI AND WAS SUBSEQUENTLY FORWARDED VIDE F.NO.CIT-I/2005-06/2132 DATED 13.03. 2006. THESE ENQUIRIES WERE INITIATED TO PROBE INTO SOME B ANK ACCOUNT WHICH WERE USED TO ISSUE CHEQUES TO ENTRY S EEKERS OR BENEFICIARIES AGAINST CASH PAID BY THEM TO THE E NTRY OPERATORS. SUCH A CAMOUFLAGED TRANSACTION CAME TO LIGHT DURING THE COURSE OF SURVEY IN THE CASE OF M/S GURC HARAN JEWELLERS WHOSE PROPRIETOR SHRI ASHOK KUMAR CHAUHAN HAD ADMITTED TO HAVE TAKEN CHEQUES UNDER THE GARB OF GI FTS AFTER GIVING CASH TO THE ENTRY OPERATOR. PROBE WAS INITIATED INTO THE ACCOUNTS WHICH WERE USED TO PROVIDE THESE ENTRIES. THESE INVESTIGATIONS LED TO REVEALING OF MANY MORE BANK ACCOUNTS WHICH WERE BEING USED BY THE ENT RY OPERATORS FOR THE PURPOSE OF GIVING ACCOMMODATION E NTRIES. 2. EXTENSIVE ENQUIRIES WERE MADE INTO NUMEROUS SUCH BANK ACCOUNTS, THE ACCOUNT HOLDERS, THE PERSONS OPE RATING THESE ACCOUNTS AND THE PERSONS FOR WHOM SUCH ACCOUN T HOLDERS WERE WORKING. THESE ENQUIRIES REVEALED INT ER ALIA THE FOLLOWING:- 2.1 ENTRIES WERE BEING BROADLY TAKEN FOR TWO PURPOS ES : THE PLOUGH BACK UNACCOUNTED BLACK MONEY FOR THE PURPOSE OF BUSINESS OR FOR PERSONAL NEEDS SUCH AS PURCHASE OF ASSETS ETC., IN THE FORM OF GIFTS, SHAR E APPLICATION MONEY, LOANS ETC. TO INFLATE EXPENSES IN THE TRADING AND PROFIT AND LOSS ACCOUNT SO AS TO REDUCE THE REAL PROFITS AND T HEREBY PAY LESS TAXES. 2.2 THE ASSESSEES WHO HAD UNACCOUNTED MONEY (CALLED AS ENTRY TAKERS OR BENEFICIARIES) AND WANTED TO INT RODUCE THE SAME IN THE BOOKS OF ACCOUNTS WITHOUT PAYING TA X, APPROACHED ANOTHER PERSON (CALLED AS ENTRY OPERATOR ) AND HANDED OVER THE CASH (PLUS COMMISSION) AND HAD TAKE N CHEQUES/DDS/POS. THE CASH WAS BEING DEPOSITED BY T HE ENTRY OPERATOR IN A BANK ACCOUNT EITHER IN HIS OWN NAME OR IN THE NAME OF RELATIVE/FRIENDS OR OTHER PERSON HIR ED BY HIM, FOR THE PURPOSE OF OPENING BANK ACCOUNT. IN M OST OF THESE BANK ACCOUNTS THE INTRODUCER WAS THE MAIN ENT RY ITA-4281 & 4949/D/2010 5 OPERATOR AND THE CASH DEPOSIT SLIPS AND OTHER INSTR UMENTS WERE FILED BY HIM. THE OTHER PERSONS (IN WHOSE NAM E THE A/C IS OPENED) ONLY USED TO SIGN THE BLANK CHEQUE B OOK AND HAND OVER THE SAME TO THE MAIN ENTRY OPERATOR. THE ENTRY OPERATOR THEN USED TO ISSUE CHEQUES/DDS/POS IN THE NAME OF THE BENEFICIARY FROM THE SAME ACCOUNT (IN WHICH THE CASH IS DEPOSITED) OR ANOTHER ACCOUNT IN WHICH FUND S WERE TRANSFERRED THROUGH CLEARING IN TWO OR MORE STAGES. THE BENEFICIARY IN TURN DEPOSITED THESE INSTRUMENTS IN HIS BANK ACCOUNTS AND THE MONEY CAME TO HIS REGULAR BOOKS OF ACCOUNT IN THE FORM OF GIFT, SHARE APPLICATION MONE Y, LOAN ETC THROUGH BANKING CHANNELS. 2.3 THE OPERATORS GAVE THE ACCOUNT HOLDERS AMOUNTS RANGING FROM RS.1000 TO 2000 PER MONTH. THESE ACCO UNT HOLDERS WERE MASONS, PLUMBERS, ELECTRICIANS, PEONS, DRIVERS ETC. WHOSE EARNINGS ARE NOT SUFFICIENT FOR A LIVING. THEY EARNED NORMALLY RS.3 TO 5 THOUSAND PER MONTH I N THEIR NORMAL WORK AND BY WORKING FOR THE ENTRY OPER ATORS EARNED EXTRA INCOME OF RS.2 TO 4 THOUSAND PER MONTH . THEIR SIGNATURES WERE TAKEN ON BLANK GIFT DEEDS, CH EQUE BOOKS, SHARE APPLICATION MONEY ETC. IN FACT THESE PERSONS SIGNED ALL TYPES OF PAPERS THEY WERE ASKED TO SIGN. THEY WERE MADE DIRECTORS OF COMPANIES, PARTNERS OF FIRMS AND PROPRIETOR OF DIFFERENT CONCERNS SOLELY FOR OPERATI ON OF THESE ACCOUNTS. ACTUALLY, MANY OF THEM WERE NOT EV EN AWARE OF THE TAX IMPLICATIONS ETC. THEIR ONLY CONC ERN WAS WITH THE FEW THOUSAND RUPEES GIVEN TO THEM BY THE E NTRY OPERATORS. 3. SUMMING UP, THE REPORT AS A RESULT OF THESE EXTENSIVE ENQUIRIES CARRIED OUT BY THE D.I.T. (INV. ), NEW DELHI HAS ASSAILED GENUINENESS OF TRANSACTIONS, WHE THER SHOWN BY BENEFICIARIES AS INFLOW OF SHARE CAPITAL O R RECEIPT OF GIFTS OR CONSIDERATION FOR SALE-PURCHASE. IT HA S ALSO DEALT A BODY BLOW TO THE CREDITWORTHINESS OF THE PERSONS/ PERSONS CONTROLLING THE CONCERNS WHO HAVE GIVEN THESE CREDI T ENTRIES/SHARE CAPITAL/GIFTS/SALE CONSIDERATION AS T HEY HAVE BEEN SEEN TO BE THE MAN OF NO MEANS. 4. IN THE INSTANT CASE OF THE ASSESSEE, M/S COMERO LEASING & FINANCIAL PVT.LTD. THE FOLLOWING CREDITS HAVE BEEN SHOWN IN THE BANK ACCOUNT OF THE ASSESSEE COMPANY:- BANK OF THE ASSESSEE BRANCH OF THE BANK AMOUNT INSTRUMENT NO. DATE CREDIT ENTRY COMING FROM THE ACCOUNT OF CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 400000 417957 6-MAY-00 ARUN FINVEST P.LTD. ITA-4281 & 4949/D/2010 6 CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 500000 884997 6-MAY-00 FAIR N SQUARE EXPORTS P LTD CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 500000 884997 6-MAY-00 FAIR N SQUARE EXPORTS P LTD CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 300000 417939 13-MAY-00 SGC PUBLISHING P.LTD. CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 300000 417939 13-MAY-00 SGC PUBLISHING P.LTD. CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 300000 820387 13-MAY-00 TASHI CONTRACTORS P.LTD. CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 300000 820387 13-MAY-00 TASHI CONTRACTORS P.LTD. CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 400000 898341 13-MAY-00 SATWANT SINGH SODHI CONST. P.LTD. CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 400000 898341 13-MAY-00 SATWANT SINGH SODHI CONST. P.LTD. CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 700000 884989 15-MAY-00 FAIR N SQUARE EXPORTS P.LTD. CANARA BANK ROHTAS NAGAR, SHAHDARA, DELHI 700000 884989 15-MAY-00 FAIR N SQUARE EXPORTS P.LTD. CANARA BANK ROHTAS NAGAR, SHAHDARA 500000 543066 27-APR-00 DUPAS LEASING & FINANCE 5. IN VIEW OF THE FINDINGS OF THE INVESTIGATION REP ORT IN THESE CASES HAVE BEEN PROVED TO BE MEN/PARTIES OF N O CREDITWORTHINESS. THE STATEMENTS ON OATH AND THE L ETTERS OF ADMISSION CLEARLY SHOW THAT THESE TRANSACTION AR E NON GENUINE. THEREFORE THE AFORESAID CREDIT ENTRIES AR E SQUARELY HIT BY SECTION 68 OF THE I.T. ACT. I, THE REFORE, HAVE REASONS TO BELIEVE THAT THIS AMOUNT OF RS.53,00,000 /- REPRESENTS INCOME OF THE ASSESSEE CHARGEABLE TO TAX WHICH HAS ESCAPED ASSESSMENT FOR A.Y. 01-02. SD/- INCOME TAX OFFICER WARD-3(4), NEW DELHI. 7. FROM THE ABOVE, WE FIND THAT AT PARAGRAPH NOS.1, 2 & 3, THE ASSESSING OFFICER HAS DISCUSSED THE FACTS IN GENERA L I.E., THE INVESTIGATION CARRIED ON BY THE DIRECTOR OF INCOME TAX (INVESTIGATION) AND THE FINDING OF SUCH INVESTIGATION, THE MODUS OPERANDI , HOW THE ENTRY OPERATOR WORKED. THE FACTS RELATING TO ASSES SEES CASE BEGIN ITA-4281 & 4949/D/2010 7 FROM PARAGRAPH 4. IF WE PERUSE THE CHART GIVEN BY THE ASSESSING OFFICER IN THE REASONS RECORDED BY WHICH HE FORMED AN OPINION THAT THERE WAS ESCAPEMENT OF INCOME OF ` 53 LAKHS, WE FIND THAT SEVERAL ITEMS HAVE BEEN CONSIDERED TWICE. ITEM NO.2 & 3, 4 & 5, 6 & 7, 8 & 9 AND 10 & 11 ARE SAME. THUS, OUT OF THE TOTAL TWELV E ITEMS, FIVE ITEMS HAVE BEEN CONSIDERED TWICE BY THE ASSESSING OFFICER WHICH IS AN APPARENT CASE OF NON-APPLICATION OF MIND. WE FIND THAT THE IDENTICAL CASE WAS CONSIDERED BY HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF SUREN INTERNATIONAL P.LTD. (SUPRA), WHEREIN, AT PAG E 32 OF THE REPORT, THEIR LORDSHIPS HELD AS UNDER:- 13. WE HAVE HEARD COUNSEL FOR THE PARTIES AT LENGT H. 14. THE LEARNED COUNSEL FOR THE APPELLANT CONTENDED THAT EVEN THOUGH THERE IS NO SPECIFIC ALLEGATION THAT TH E ASSESSEE HAD FAILED TO DISCLOSE ALL THE MATERIAL FA CTS BUT THE SAME CAN BE GLEANED FROM THE REASONS ITSELF. W E ARE UNABLE TO ACCEPT THIS CONTENTION. IN THE FIRST INS TANCE, WE DO NOT FIND THE REASONS AS RECORDED BY THE ASSESSIN G OFFICER TO BE REASONS IN LAW, AT ALL. A BARE PERUS AL OF THE TABLE OF ALLEGED ACCOMMODATION ENTRIES INCLUDED IN THE REASONS AS RECORDED, DISCLOSES THAT THE SAME ENTRIE S HAVE BEEN REPEATED SIX TIMES. THIS IS CLEARLY INDICATIV E OF THE CALLOUS MANNER IN WHICH THE REASONS FOR INITIATING REASSESSMENT PROCEEDINGS ARE RECORDED AND WE ARE UN ABLE TO COUNTENANCE THAT ANY BELIEF BASED ON SUCH STATEM ENTS CAN EVER BE ARRIVED AT. THE REASONS HAVE BEEN RECO RDED WITHOUT ANY APPLICATION OF MIND AND THUS NO BELIEF THAT INCOME HAS ESCAPED ASSESSMENT CAN BE STATED TO HAVE BEEN FORMED BASED ON SUCH REASONS AS RECORDED. 8. THE FACTS IN THE ASSESSEES CASE ARE IDENTICAL. IN THIS CASE ALSO, THE ASSESSING OFFICER, EXCEPT PREPARING THE TABLE O F ALLEGED ACCOMMODATION ENTRIES FROM THE DETAILS CLAIMED TO H AVE BEEN RECEIVED FROM THE INVESTIGATION WING, HAS NOT AT ALL APPLIED HIS MIND. FROM A BARE PERUSAL OF THE TABLE OF THE ALLEGED ACCOMMODAT ION ENTRIES, IT IS EVIDENT THAT THE SAME ENTRIES HAVE BEEN REPEATED FI VE TIMES. THIS IS THE CLEAR INDICATION OF NON-APPLICATION OF MIND BY THE ASSESSING OFFICER. ITA-4281 & 4949/D/2010 8 THEREFORE, THE ABOVE DECISION OF HON'BLE JURISDICTI ONAL HIGH COURT WOULD BE SQUARELY APPLICABLE TO THE FACTS OF THE AS SESSEES CASE. 9. LEARNED DR HAS ALSO RELIED UPON THE TWO DECISION S OF HON'BLE JURISDICTIONAL HIGH COURT. THE FIRST ONE WAS IN TH E CASE OF NOVA PROMOTERS AND FINLEASE (P) LTD. (SUPRA). HOWEVER, FROM A PERUSAL OF THE ORDER OF HON'BLE JURISDICTIONAL HIGH COURT, WE FIND THAT THE ISSUE OF REOPENING OF ASSESSMENT WAS NOT BEFORE THEIR LORDSH IPS BUT THE ISSUE BEFORE THE HON'BLE JURISDICTIONAL HIGH COURT WAS ON LY WITH REGARD TO CERTAIN CASH CREDITS. THEREFORE, THE AFORESAID DEC ISION CANNOT BE SAID TO BE APPLICABLE TO THE FACTS OF THE ASSESSEES CAS E. LEARNED DR HAS ALSO RELIED UPON THE DECISION OF HON'BLE JURISDICTI ONAL HIGH COURT IN THE CASE OF A.G. HOLDINGS PVT.LTD. (SUPRA). IN THIS CA SE, THE ASSESSMENT WAS REOPENED AFTER FOUR YEARS FROM THE END OF THE R ELEVANT ASSESSMENT YEAR. IT WAS CONTENDED BY THE ASSESSEE THAT THERE WAS NO FAILURE ON THE PART OF THE ASSESSEE TO DISCLOSE ALL MATERIAL F ACTS BECAUSE IN THE DOCUMENTS ATTACHED TO THE RETURN OF INCOME, ALL PRI MARY FACTS WERE DISCLOSED. HON'BLE JURISDICTIONAL HIGH COURT DID N OT ACCEPT THE ASSESSEES CONTENTION AND HELD :- DISMISSING THE PETITION, (I) THAT THE DOCUMENTS AT TACHED TO THE RETURN OF INCOME WERE ONLY THE STATUTORY AUDITO RS REPORT AND THE FINAL ACCOUNTS, NAMELY, THE INCOME A ND EXPENDITURE ACCOUNT, THE BALANCE-SHEET AND THE NOTE S FORMING PART OF THE ACCOUNTS. THERE WAS NOTHING IN THESE PAPERS DISCLOSING SPECIFICALLY THE RECEIPT OF SHARE CAPITAL FROM Q. THE ASSESSEE HAD STATED IN ITS OBJECTIONS TO THE NOTICE THAT THE SUM RECEIVED AS SHARE CAPITAL FROM Q WAS DULY DISCLOSED IN THE AUDITED ACCOUNTS FILED ALONG WITH THE RETURN OF INCOME. THERE WAS NO AVERMENT IN THE AFF IDAVIT OR IN THE OBJECTIONS THAT THE COPY OF THE CERTIFICA TE OF INCORPORATION OF THE COMPANY, THE BOARD RESOLUTION PASSED FOR INVESTING IN EQUITY SHARES OF THE ASSESSEE AND THE COPY OF THE SHARE APPLICATION FORM HAD BEEN SUBMITTED WI TH THE RETURN OF INCOME. THE ANNUAL RETURN FILED BY THE A SSESSEE WITH THE REGISTRAR OF COMPANIES, THE BALANCE-SHEET OF Q HAD BEEN FILED ONLY WITH THE OBJECTIONS. IN THESE CIRCUMSTANCES, THE CONTENTION OF THE ASSESSEE THAT FULL AND ITA-4281 & 4949/D/2010 9 TRUE PARTICULARS RELATING TO THE RECEIPT OF THE SHA RE CAPITAL OF RS.4,50,000 FROM Q HAD BEEN FURNISHED ALONG WITH THE RETURN OF INCOME WAS NOT TENABLE. 10. THUS, WE FIND THAT THE FACTS AND CONTENTION OF THE ASSESSEE IN THE APPEAL BEFORE US ARE ALTOGETHER DIFFERENT. IN THE APPEAL BEFORE US, THE CONTENTION OF THE ASSESSEE IS THAT THE ASSESSING OF FICER ISSUED THE NOTICE UNDER SECTION 148 MECHANICALLY SIMPLY ON THE BASIS OF INFORMATION ALLEGED TO HAVE BEEN RECEIVED FROM THE INVESTIGATION WING WITHOUT APPLICATION OF MIND. ON THE FACTS OF THE C ASE, WE FIND THIS CONTENTION OF THE LEARNED COUNSEL TO BE CORRECT AND MOREOVER, ON IDENTICAL FACTS, HON'BLE JURISDICTIONAL HIGH COURT IN THE CASE OF SUREN INTERNATIONAL P.LTD. (SUPRA) HELD THAT THE REASONS RECORDED WITHOUT ANY APPLICATION OF MIND CANNOT BE SAID TO BE A PROPER B ELIEF WITH REGARD TO ESCAPEMENT OF INCOME. WE, THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF HON'BLE JURISDICTIONAL HIGH COURT IN TH E CASE OF SUREN INTERNATIONAL P.LTD. (SUPRA), UPHOLD THE ORDER OF L EARNED CIT(A) AND DISMISS THE APPEAL FILED BY THE REVENUE. 11. AT THE TIME OF HEARING BEFORE US, BOTH THE PART IES HAVE FAIRLY ADMITTED THAT THE ISSUE RAISED IN THE CASE OF CAMBO J BROTHERS PVT.LTD. VIDE ITA NO.4949/DEL/2010 AND THE FACTS IN THE SAID CASE ARE IDENTICAL TO THE FACTS IN THE CASE OF COMERO LEASING & FINANC IAL PVT.LTD. THEREFORE, FOR THE DETAILED DISCUSSION FROM PARAGRA PH NO.6 TO 9 ABOVE, WE UPHOLD THE ORDER OF LEARNED CIT(A) IN THE CASE O F CAMBOJ BROTHERS PVT.LTD. ALSO AND DISMISS BOTH THE APPEALS OF THE R EVENUE. 12. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. DECISION PRONOUNCED IN THE OPEN COURT ON 14 TH AUGUST, 2014. SD/- SD/- ( (( (CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG CHANDRA MOHAN GARG) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 14.08.2014 VK. ITA-4281 & 4949/D/2010 10 COPY FORWARDED TO: - 1. APPELLANT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -3(4) & 3(2), 3(4) & 3(2), 3(4) & 3(2), 3(4) & 3(2), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. 2. RESPONDENT : M/S COMERO LEASING & FINANCIAL PVT. LTD., M/S COMERO LEASING & FINANCIAL PVT.LTD., M/S COMERO LEASING & FINANCIAL PVT.LTD., M/S COMERO LEASING & FINANCIAL PVT.LTD., 24, SADHNA ENCLAVE, MALVIYA NAGAR, 24, SADHNA ENCLAVE, MALVIYA NAGAR, 24, SADHNA ENCLAVE, MALVIYA NAGAR, 24, SADHNA ENCLAVE, MALVIYA NAGAR, NEW DELHI. AND NEW DELHI. AND NEW DELHI. AND NEW DELHI. AND M/S CAMBOJ BROTHERS PVT.LTD., M/S CAMBOJ BROTHERS PVT.LTD., M/S CAMBOJ BROTHERS PVT.LTD., M/S CAMBOJ BROTHERS PVT.LTD., B B B B- -- -217, YOJNA VIHAR, 217, YOJNA VIHAR, 217, YOJNA VIHAR, 217, YOJNA VIHAR, DEL DEL DEL DELHI HI HI HI 110 092. 110 092. 110 092. 110 092. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR