ITO, BIKANER V. Shri Gyan Chand Soni S/o Shri Ganga Ram Soni, BIKANER

ITA 87/JODH/2009

• Counselvise Citation: 8723314 RSA 2009
• Duration Of Justice: 2 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2011
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 02-12-2011
• Assessment Year: 2003-2004
• Appeal Filed On: 05-03-2009
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MAHESH KUMAR
• Assessee Lawyers: U C JAIN; RAJENDRA JAIN
• Keywords: Gift; Accommodation entries; Reason to believe; Reassessment proceedings; Borrowed satisfaction
• Section: 147; 131; 153A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : JODHPUR BENCH: JODHPUR. BEFORE SHRI R.K. GUPTA, HONBLE JUDICIAL MEMBER AND SHRI N.L. KALRA, HONBLE ACCOUNTANT MEMBER ITA NO. 87/JODH/2009 A.Y. 2003-04 INCOME TAX OFFICER WARD-1(2), BIKANER. VS. SHRI GYAN CHAND SONI S/O SHRI GANGA RAM SONI, SUNARO KI GUWAD, BIKANER. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI MAHESH KUMAR RESPONDENT BY : SHRI U.C. JAIN AND SHRI RAJENDRA JAIN. DATE OF HEARING : 02./12/2011 DATE OF PRONOUNCEMENT : 09-12-2011 O R D E R PER N.L. KALRA, A.M. THE REVENUE HAS FILED AN APPEAL AGAINST ORDER OF LD . CIT(A) DATED 13.02.2009. 2. THE FIRST GROUND OF APPEAL OF THE REVENUE IS AS UNDER :- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. CIT(A) HAS ERRED IN QUASHING THE ORDER PASSED BY THE AO U/S 143(3)/148 OF IT ACT, 1961 ON THE GROUND THAT AO DOES NOT HAVE ANY MATERIAL WITH HIM TO FOR M BELIEF OF ESCAPEMENT, THOUGH THE AO WAS VERY RIGHT IN ISSUE OF NOTICE US/ 148 O F THE IT ACT ON THE BASIS OF INFORMATION IN HIS POSSESSION AT THAT TIME. 3. THE AO RECEIVED INFORMATION FROM ACIT, CENTRAL C IRCLE-3, JAIPUR AND THE SAME HAS BEEN MENTIONED BY THE A.O. AT PAGES 2 TO 5 OF THE O RDER AND THE SAME IS REPRODUCED AS UNDER :- 1. A SEARCH & SEIZURE OPERATION U/S 132(1) OF THE I .T. ACT, 1961 WAS CARRIED OUT ON 12.04.2005 IN THE CASE OF B.C. PUROHIT & CO. AN D ITS ASSOCIATES AT JAIPUR & KOLKATA. THE MAIN ALLEGATION LEADING TO THE SEA RCH IN THIS GROUP WAS THAT M/S.B.C. PUROHTI & CO., AND THE PERSONS ASSOCIATES WITH IT ARE OPERATING A RACKET FOR CONVERTING BLACK MONEY INTO WHITE. IT W AS LEARNT THAT THEY WERE PROVIDING BOGUS ENTRIES FOR GIFT, LOANS, SHARE APP LICATION MONEY, LONG TERM CAPITAL GAIN ETC. 2. THE MODUS OPERANDI ADOPTED FOR RUNNING THIS RAC KET IN RESPECT PROVIDING ACCOMMODATION ENTRIES OF GIFT, LOANS AND SHARE APP LICATION MONEY IS VERY SIMPLE. CASH IS RECEIVED FROM THE PARTY WHO WANTS TO TAKE THE ACCOMMODATION ENTRY AND DEPOSITED IN SOME BANK ACC OUNT. THE MONEY IS ROTATED THROUGH CHEQUE IN ONE OR TWO, OR MORE BANK ACCOUNTS BEING OPERATED BY THESE RACKETEERS AND FINALLY A CHEQUE OR DRAFT IS ISSUED IN THE NAME OF THE PARTY WHO HAD GIVEN THE CASH. THE MONEY IS FINALLY PARKED, IN THE FORM OF GIFT, LOAN, SHARE APPLICATION MONEY OR PROCEEDS OF SALE OF SHARES. THE VARIOUS PARTIES INVOLVE DIN IT MAY BE AS UNDER : 2(I) THE ENTRY OPERATTOR :THESE ARE OWNERS AND EMP LOYEES OF M/S. B.C. PUROHIT & CO. WHO HAVE CREATED A COMPLEX NETWORK O F BANK ACCOUNTS AND INCOME TAX FILES AND ARE OPERATING THESE TO PROVID E THE ACCOMMODATION ENTRIES OF DIFFERENT TYPES. 2(II) THE BENEFICIARIES : THESE ARE THE PARTIES W HO HAVE TAKEN THE ACCOMMODATION ENTRIES AND HAVE INTRODUCED THEIR UN ACCOUNTED MONEY IN THEIR BOOKS OF ACCOUNTS USING THIS RACKET RUN BY TH E ENTRY OPERATORS. THEY ARE THE PERSONS WHO HAVE BEEN FINALLY BENEFITED BY THIS RAC KET. 2(III) THE ASSOCIATED PERSONS :THESE ARE THE INDIV IDUALS IN WHOSE NAME INCOME TAX FILES AND BANK ACCOUNTS HAVE BEEN C REATED/OPERATED BY THE ENTRY OPERATORS AND WHOSE NAMES HAVE BEEN USED FOR PROVIDING THE ACCOMMODATION ENTRIES. THESE PERSONS ARE OF NO MEA NS. SH. KRIPA SHANKAR SHARMA AT THE TIME OF PROCEEDINGS U/S 153A IN THE CASE OF SH. KRIPA SHANKAR SHARMA, IT IS SEEN THAT JURISDICTION OVER THE PERSONS WHO H AVE OBTAINED ACCOMMODATION ENTRIES LIES WITH YOUR CHARGE. ON PERUSAL OF THE BA NK STATEMENTS OF ENTRY PROVIDERS WHICH WERE CALLED BY THIS OFFICE FROM THE CONCERNED BANK, IT IS SEEN THAT LARGE SUM OF CASH HAS BEEN DEPOSITED IN THESE BANK ACCOUNTS WHICH HAVE BEEN USED TO PROVIDE ACCOMMODATION ENTRIES IN THE F ORM OF GIFT, LOAN ETC. THE DETAILS OF PERSONS/BENEFICIARIES, WHO HAVE OBT AINED ACCOMMODATION ENTRIES FROM SH. KRIPA SHANAKR SHARMA AND HIS ASSOC IATES, IS AS UNDER :- S.NO. NAME AND ADDRESS DATE OF ACCO MMO DATIO N ENTRY AMOUNT NAME OF ENTRY PROVI DER 01 GYAN CHAND SONI, SUNARON KA MOHALLA, BIKANER 14.10.2002 1,50,000/- RAM DAS SHAR MA 02 GYAN CHAND SONI, SUNARON KA MOHALLA, BIKANER, AETPS1238R 11.11.2002 1,00,200/- DHARMENDRA AGAR WAL 03 GYAN CHAND SONI, SUNARON KA MOHALLA, BIKANER AETPS1238R 14.10.2002 1,50,000/- RAKESH KUMAR SHAR MA 04 GYAN CHAND SONI, SUNARON KA MOHALLA, BIKANER. AETPS1238R 11.11.2002 1,50,300/- SHIV RAJ SMT. ANAR DEVI: THE RESIDENTIAL PREMISES OF SMT. ANAR DEVI, 712, B AGA HARISH CHANDRA MARG, JAIPUR WAS SEARCHED. DURING THE COURSE OF ASSESSMEN T PROCEEDINGS U/S 153A OF THE I.T. ACT, 1961, WHILE VERIFYING HER BANK ACCOUN T IT WAS SEEN THAT LARGE SUM OF CASH HAS BEEN DEPOSITED IN HER BANK ACCOUNT ON VARI OUS DATES AND IMMEDIATELY THEREAFTER CHEQUE / D.D. HAS BEEN ISSUED FROM HER B ANK ACCOUNT. THE ASSESSEE IS A LABOUR AND OF NO MEANS AND THIS FACT WAS ESTABLIS HED AT THE TIME OF SEARCH ALSO. THE INCOME-TAX FILE OF SMT. ANAR DEVI WAS CRE ATED TO PROVIDE ACCOMMODATION ENTRIES BY SH. KRIPA SHANKER SHARMA, AN EMPLOYEE OF M/S. B.C. PUROHIT & COMPANY. SMT. ANAR DEVI, DURING THE COURS E OF SEARCH, HAS STATED IN HER STATEMENT RECORDE DON OATH THAT SHE HAS NOTHING TO DO WITH THETANSACTIONS APPEARING IN HER BANK ACCOUNT AND THE SAME WAS OPER ATED BY SH. KRIPA SHANKER SHARMA TO PROVIDE ACCOMMODATION ENTRIES. THE SAME F ACT HAS ALSO BEEN STATED BY HER DURING THE COURSE OF ASSESSMENT PROCEEDINGS ON OATH IN RESPONSE TO SUMMONS ISSUED U/S 131 OF THE I.T. ACT, 1961 AND AL SO BY FILING AN AFFIDAVIT. ON PERUSAL OF HER BANK ACCOUNT WITH SBBJ, INDIRA B AZAR, JAIPUR AND AFTER MAKING NECESSARY ENQUIRIES IT IS SEEN THAT THE FOLL OWING PERSONS/BENEFICIARIES, WHO HAVE OBTAINED ACCOMMODATION ENTRIES FROM SMT. A NAR DEVI, HAVE GIVEN ADDRESSES WHICH LIES UNDER YOUR JURISDICTION. S. NO. NAME AND ADDRSS DATE OF ACCOMMO DATION ENTRY AMOUNT 01 GYAN CHAND SONI, SUNARON KA MOHALLA, BIKANER. AETPS1238R 11.11.2001 1,00,000/- 02 GYAN CHAND SONI, SUNARON KA MOHALLA, BIKANER. AETPS1238R 11.11.2002 1,00,000/- SH. GOVIND VERMA: THE RESIDENTIAL PREMISES OF SH. GOVIND VERMA, 712, BABA HARISH CHANDRA MARG, JAIPUR WAS SEARCHED. DURING THE COURSE OF ASS ESSMENT PROCEEDINGS U/S 153A OF THE I.T. ACT, 1961, WHILE VERIFYING HIS BAN K ACCOUNT IT WAS SEEN THAT LARGE SUM OF CASH HAS BEEN DEPOSITED IN HIS BANK AC COUNT ON VARIOUS DATES AND IMMEDIATELY THEREAFTER CHEQUE / D.D. HAS BEEN ISSUE D FROM HIS BANK ACCOUNT. THE ASSESSEE IS A LABOUR AND OF NO MEANS AND THIS F ACT WAS ESTABLISHED AT THE TIME OF SEARCH ALSO. THE INCOME-TAX FILE OF SH. GOV IND VERMA WAS CREATED TO PROVIDE ACCOMMODATION ENTRIES BY SH. KRIPA SHANKER SHARMA, AN EMPLOYEE OF M/S. B.C. PUROHIT & COMPANY. SH. GOVIND VERMA, DURI NG THE COURSE OF SEARCH, HAS STATED IN HIS STATEMENT RECORDED ON OATH THAT H E HAS NOTHING TO DO WITH THE TRANSACTIONS APPEARING IN HIS BANK ACCOUNT AND THE SAME WAS OPERATED BY SH. KRIPA SHANKAR SHARMA TO PROVIDE ACCOMMODATION ENTRI ES. THE SAME FACT HAS ALSO BEEN STATED BY HIM DURING THE COURSE OF ASSESS MENT PROCEEDINGS ON OATH IN RESPONSE TO SUMMONS ISSUED U/S 131 OF THE I.T. ACT, 1961 AND ALSO BY FILING AN AFFIDAVIT. S. NO. NAME AND ADDRESS DATE OF ACCOMMO DATION ENTRY AMOUNT 01 GYAN CHAND SONI, SUNARON KA MOHALLA, BIKANER. AETPS1238R 11.11.2002 1,50,000/- NOTICE U/S 148 WAS ISSUED AFTER RECORDING REASONS A ND GETTING THE PERMISSION FROM JCIT RANGE-1, BIKANER. THE ASSESSEE RAISED OBJECTIONS AG AINST RE-OPENING OF THE ASSESSMENT AND THE A.O. PASSED AN ORDER ON 07.10.2008. 3.1 BEFORE THE LD. CIT(A), THE ASSESSEE RAISED THE FOLLOWING CONTENTIONS WHICH ARE SUMMARIZED AS UNDER :- (I) IN THE ORIGINAL ASSESSMENT PROCEEDINGS, THE ASSESSE E FILED AFFIDAVITS AND CONFIRMATIONS FROM THE CREDITORS. (II) AT THE TIME OF RECORDING REASONS, THE A.O. WAS NOT HAVING THE STATEMENTS OF THE CREDITORS AND THESE WERE NOT EXAMINED BY THE A. O. (III) NO OPINION WAS FRAMED IN RESPECT OF GENUINENESS OF CREDITS APPEARING IN THE BOOKS OF ASSESSEE. (IV) THE REASONS DO NOT SHOW ANY LIVE LINK OR NEXUS BETW EEN THE MATERIAL ON RECORD AND THE FORMATION OF BELIEF ABOUT THE ESCAPE MENT OF INCOME AS THE ASSESSEE AHS NOT OBTAINED ANY LOAN FROM SH. KRIPA S HANKER. 3.2 THE LD. CIT(A) HAS HELD THAT RE-OPENINGIS NOT V ALID AND THE FINDINGS OF LD. CIT(A) ARE SUMMARIZED AS UNDER :- (A)IN THE COURSE OF SEARCH IN THE CASE B.C. PUROHIT GROUP, STATEMENT OF SH. KRIPA SHANAKR WAS RECORDED IN WHICH HE ADMITTED TO HAVE P ROVIDED ACCOMMODATION ENTRIES TO VARIOUS PERSONS. THE A.O. WAS ONLY HAVING THE LETTE R OF ACIT, CENTRAL CIRCLE-3, STATEMENTS OF SH. KRIPA SHANKAR, SMT. ANAR DEVI AND SH. GOVIND VERMA WERE NOT WITH A.O. AT THE TIME OF RECORDING OF REASONS AND ISSUE OF NOTICE U/S 148. (B)THE REOPENING IS WITHOUT APPLICATION OF MIND AND MECHANICALLY THE NOTICE WAS ISSUED AS THE LOANS OF DIRECTION OF ACIT, CENTRAL CIRCLE-3 , JAIPUR. (C)IN THE REASONS RECORDED BY THE A.O. IT IS MENTIO NED THAT CASH AHS BEEN DEPOSITED IN BANK ACCOUNTS WHICH WERE IN THE NAME OF DIFFERENT P ERSONS. NEITHER THE A.O. NOT THE LETTER OF ACIT CENTRAL CIRCLE-3, JAIPUR SHOWS THAT CASH WAS DEPOSITED BY THE ASSESSEE IN THE BANK ACCOUNT OF THE CREDITORS. (D) THE A.O. HAS REOPENED THE ASSESSMENT ON THE BAS IS OF BORROWED SATISFACTION. (E) THE A.O. DOES NOT HAVE ANY MATERIAL TO FORM ANY BELIEF OF ESCAPEMENT. 3.3 DURING THE COURSE OF PROCEEDINGS BEFORE US THE LD. DR HAS FILED A PAPER BOOK CONTAINING 88 PAGES OUR ATTENTION WAS DRAWN TOWARDS THE STATEMENT OF SH. KRIPA SHANKAR AVAILABLE AT PAGES 13 TO 28 OF THE PAPER BOOK. IN A NSWER TO QUESTION NO. 9, SHRI KRIPA SHANKAR SHARMA ADMITTED TO HAVE INTRODUCED CERTAIN PERSON FOR GETTING THEIR BANK ACCOUNT OPENED. THE NAMES OF PERSONS FROM WHOM THE ASSESSEE GOT CREDITS ARE MENTIONED. IT WAS SUBMITTED THAT SH. KRIPA SHANKAR SHARMA ADMITTED TH AT THE BANK ACCOUNTS WERE OPENED TO PROVIDE ACCOMMODATION ENTRIES. 3.4 OUR ATTENTION WAS DRAWN TOWARDS STATEMENT OF SM T. ANAR DEVI, SH. GOVIND RAM RECORDED U/S 131 OF THE I.T. ACT BY ACIT, CENTRAL C IRCLE ON 11.10.207. IN THERE STATEMENT THESE PERSONS ADMITTED THAT THEY HAVE NOT GIVEN ANY LOANS. HENCE THE FACT THE BANK ACCOUNTS OF THESE PERSONS WERE UTILIZED TO PROVIDE ACCOMMODA TION ENTRIES. ACCORDINGLY ACIT, CENTRAL CIRCLE-3 VIDE LETTER DATED 29/11/2007 SENT A LETTER TO CIT, BIKANER THOUGH PROPER CHANNEL AND SUCH LETTER WAS FORWARDED TO JOINT COMM ISSIONER BY THE OFFICE OF CIT, BIKANER, ACIT CENTRAL CIRCLE ALSO SENT A LETTER ON 10/10/200 7 TO CIT, BIKANER WHICH WAS FORWARDED TO A.O. HAVING JURISDICTION OVER ASSESSEE. THE A.O. CENTRAL CIRCLE-3 RECORDED STATEMENTS WHILE COMPLETING ASSESSMENT U/S 153A OF SH. KRIPA S HANAKR SHARMA. OUR ATTENTION WAS DRAWN TOWARDS THE ORDER OF A.O. AVAILABLE AT PAGES 55 TO 65 OF THE PAPER BOOK IN WHICH THE A.O. HAS DEALT WITH ALL THE OBJECTIONS RAISED BY TH E ASSESSEE. 3.5 THE MAIN CONTENTION OF THE ASSESSEES A/R IS TH AT THE A.O. WAS NOT HAVING ALL THE MATERIAL AT THE TIME OF RE-OPENING OF THE ASSESSMEN T. HE HAS SIMPLY RELIED ON THE INFORMATION CONTAINED IN THE LETTER. 3.6 THE HONBLE APEX COURT IN THE CASE OF ITO V PU RUSHOTTAM DASS BANGUR AND OTHERS 224 ITR 362 HAD AN OCCASION TO CONSIDER AS TO WHETH ER THE REOPENING CAN BE DONE ON THE BASIS OF INFORMATION CONTAINED IN THE LETTER OF DDI (INVESTIGATION) SPECIAL CELL. CERTAIN FINANCIAL INFORMATION WAS COLLECTED WHICH SHOWED TH AT QUOTATION OF SHARES OF SHREE UMAID MILLS LTD. HAVE BEEN MANIPULATED AS THE VALUE OF SH ARES HAVE GONE DOWN DURING THE LAST WEAK OF MARCH FROM RS. 168 TO RS. 85 THROUGH BOOK V ALUE HAS ROSE AND EARNING PER SHARE ALSO STAND INCREASED. THIS MANIPULATION WAS FOR SHO WING THE VALUE OF SHARES AS LESS FOR WEALTH TAX PURPOSES. THE HONBEL APEX COURT HEAD AS UNDER :- REVERSING THE DECISION OF THE HIGH COURT, THAT THE LETTER OF THE DEPUTY DIRECTOR REFERRED TO THE STATEMENT CONTAINING FINAN CIAL INFORMATION REGARDING THE COMPANY IN QUESTION WHICH WAS ANNEXED TO THE LE TTER. THE STATEMENT CONTAINED INFORMATION DERIVED FROM THE BOMBAY STOCK EXCHANGE DIRECTORY INDICATING THAT DURING THE PERIOD 1965-70, THE COMP ANY HAD PROSPERED, THAT THE BOOK VALUE PER EQUITY SHARE HAD RISEN FROM RS. 318.55 FOR THE YEAR ENDING DECEMBER, 31, 1965, TO RS. 401 FOR THE YEAR ENDING DECEMBER, 31, 1970, THE EARNING PER SHARE HAD RISEN FROM RS. 8,37 PER SHARE S TO RS. 44 PER SHARE AND THAT THE DIVIDEND PERCENTAGE HAD ALSO RISEN FROM 2 PER CENT TO 10 PER CENT FOR THE SAME PERIOD. ON THE BASIS OF THE INFORMATION CO NTAINED IN THE LETTER OF THE DEPUTY DIRECTOR AND THE DOCUMENTS THE FAIR MARKET V ALUE OF THE SHARES WAS FAR MORE THAN THE SALE PRICE AND THAT THE MARKET QUOTAT IONS FROM THE CALCUTTA STOCK ASSOCIATION SHOWN BY THE RESPONDENT AT THE TI ME OF ORIGINAL ASSESSMENT WERE MANIPULATED ONES AND THAT AS A RESULT INCOME C HARGEABLE TO TAX HAD ESCAPED ASSESSMENT. IT COULD NOT BE SAID THAT THE I NFORMATION THAT WAS CONTAINED IN THE LETTER WAS NOT DEFINITE INFORMATIO N, AND COULD NOT BE ACTED UPON BY THE INCOME-TAX OFFICER FOR TAKING ACTION UN DER SECTION 147(B) OF THE ACT. MERELY BECAUSE THE NOTICE WAS SENT ON THE NEXT DAY AFTER RECEIPT OF THE LETTER, THIS DID NOT MEAN THAT THE INCOME-TAX OFFIC ER DID NOT APPLY HIS MIND TO THE INFORMATION CONTAINED IN THE SAID LETTER. ON TH E BASIS OF THE FACTS AND INFORMATION CONTAINED IN THE SAID LETTER, THE INCOM E-TAX OFFICER, WITHOUT ANY FURTHER INVESTIGATION, COULD HAVE FORMED THE OPINIO N THAT THERE WAS REASON TO BELIEVE THAT INCOME OF THE RESPONDENT CHARGEABLE TO TAX HAD ESCAPED ASSESSMENT. THE NOTICE UNDER SECTION 147 (B) WAS VA LID. 3.7 ON IDENTICAL FACTS, THE HONBEL DELHI HIGH COUR T IN THE CASE OF AGR INVESTMENT LTD. V. ADDL. CIT 333 ITR 146 DISMISSED THE COST PETITION AFTER OBSERVING AS UNDER :- DISMISSING THE PETITION, THAT THE TRANSACTIONS IN VOLVING RS. 27 LAKHS CONSTITUTED FRESH INFORMATION IN RESPECT TOF THE A SSESSEE AS A BENEFICIARY OF BOGUS ACCOMMODATION ENTRIES PROVIDED TO IT AND R EPRESENTED UNDISCLOSED INCOME. THERE WAS SPECIFIC INFORMATION RECEIVED FRO M THE OFFICE OF THE DIRECTORATE OF INVESTIGATION AS REGARDS THE TRANSAC TIONS ENTERED INTO BY THE ASSESSEE WITH A NUMBER OF CONCERNS WHICH HAD MADE A CCOMMODATION ENTRIES AND THEY WERE NOT GENUINE TRANSACTIONS. IT WAS NEIT HER A CHARGE OF OPINION NOR DID IT CONVEY A PARTICULAR INTERPRETATION OF A SPEC IFIC PROVISION WHICH WAS DONE IN A PARTICULAR MANNER IN THE ORIGINAL ASSESSMENT A ND SOUGHT TO BE DONE IN A DIFFERENT MANNER IN THE PROCEEDINGS UNDER SECTION 1 47 OF THE ACT. THE REASON TO BELIEVE HAD BEEN APPROPRIATELY UNDERSTOOD BY THE ASSESSING OFFICER AND THERE WAS MATERIAL ON THE BASIS OF WHICH THE NOTICE WAS ISSUED. IN EXERCISE OF THE JURISDICTION UNDER ARTICLE 226 OF THE CONSTITUT ION, THE SUFFICIENCY OF REASONS FOR FORMATION OF THE BELIEF COULD NOT BE CONSIDERED . IT WAS OPEN TO THE ASSESSEE TO PARTICIPATE IN THE REASSESSMENT PROCEEDINGS AND PUT FORTH ITS STAND IN DETAIL TO SATISFY THE ASSESSING OFFICER THAT THERE WAS NO ESCAPEMENT OF TAXABLE INCOME 3.8 THE A.O. CENTRAL CIRCLE-3 IN HIS LETTER HAS GIV EN SPECIFIC INFORMATION AND HAS POINTED OUT THAT PREMISES OF SMT. ANAR DEVI 712, BA BA HARISH CHANDER MARG WAS SEARCHED. THIS ASSESSEE WAS A LABOUR AND OF NO MEANS. THERE W ERE HUGE DEPOSITS IN HER BANK ACCOUNT. THE INCOME TAX FILE OF SMT. ANAR DEVI WAS CREATED T O PROVIDE ACCOMMODATION ENTRIES. THE FINANCIAL INFORMATION CONTAINED IN THE LETTER WAS S UFFICIENT FOR THE A.O. TO REOPEN THE ASSESSMENT. IT WAS ALSO MENTIONED IN THE LETTER THA T SOME OF THE BENEFICIARIES HAVE ALREADY SURRENDERED THE ENTRIES. 3.9 LOOKING TO THE FACTS ON RECORD, WE HOLD THAT TH ERE WAS SUFFICIENT MATERIAL BEFORE THE A.O. TO HAVE THE REASONS TO BELIEVE THAT INCOME HAS ESCAPED ASSESSMENT. RE-OPENING IS HELD AS VALID. 4 ON THE ISSUE ON MERIT OF ADDITION WE FEEL THAT MA TTER IS TO GO BACK AS THE ASSESSEE IS TO BE PROVIDED COPIES OF THE STATEMENT OF THE CREDI TORS AND ASSESSEE SHOULD BE PROVIDED AN OPPORTUNITY TO EXPLAIN THE CASH CREDITS. HENCE THIS ISSUE IS RESTORED BACK ON THE FILE OF THE A.O. 5 IN THE RESULT, THE APPEAL OF REVENUE IS PARTLY AL LOWED. SD/- SD/- ([R.K. GUPTA] [N.L. KALRA] JUDICIAL MEBMER ACCOUNTANT MEMBER DATED : 09-12-2011 COPY TO ALL CONCERNED : A/R.