“borrowed satisfaction”

Rani Goenka, Kolkata vs. ITO, Ward 44(2), Kolkata

In the result, the appeal of the assessee is allowed

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarma]

assessee has challenged the re-opening of assessment u/s 147 r.w.s 148 of the Act by the AO on the basis of borrowed satisfaction without any independent application of mind which has been upheld by the ld CIT. Besides , the assessee has challenged the confirmation of addition ... facts on records . Considering all these aspects we are of the view that the reopening by AO is purely on the basis of borrowed satisfaction without any application of mind.The case of the assessee finds supports from the decision of Hon'ble Delhi High Court in the case of ACIT

M/S. Indovision Securities Limited., Kolkata vs. ITO, Ward-6(2), Kolkata.

In the result, the appeal of the assessee stands allowed

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.1353/Kol/2023 Assessment Year : 2012-13 M/S Indovision Securities Ltd….…………............…...……………....Appellant Block B, Suit No.1A, 1St Floor Mangalam, 24 & 26 Hemanta Basu Sarani, Isi P.O S.O, Kolkata-1. [Pan: Aaaci5310G] Vs. Ito, Ward-6(2), Kolkata….….............................................…..…..... Respondent Appearances By: Shri Sunil Surana, Ar, Appeared On Behalf Of The Appellant. Shri Abhijit Kundu, Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : February 27, 2024 Date Of Pronouncing The Order : March 11, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 30.03.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Appeal Is Time-Barred By 196 Days. A Separate Application For Condonation Of Delay Has Been Filed. Considering The Averments Made In The Application, The Delay In Filing The Present Appeal Is Hereby Condoned. 3. The Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “1. For That The Ld Cit(A) Erred In Deciding The Appeal Ex-Parte When No Proper & Reasonable Opportunity Of Being Heard Was Granted.

truthfulness of such information. As per the assessee, the information was wrong and that the Assessing Officer reopened the assessment on the basis of borrowed satisfaction without correlating the said information with the facts of the case. Even there is no allegation that the income of the assessee has escaped ... other facts of the case and thereafter should have satisfied himself of escapement of income. Reopening is not permissible on the basis of borrowed satisfaction of the Assessing Officer. 12. Even otherwise, the ld. counsel has invited our attention to the approval given by the ld. PCIT for reopening

ACIT, C.C.-1., Raipur vs. M/S Ace Trexim Pvt.Ltd., Raipur

In the result, the appeal of the revenue stands dismissed

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.441/Kol/2020 Assessment Year: 2010-11 Acit(Central Circle)-1, Raipur…………............…...……………....Appellant Vs. M/S Ace Trexim Pvt. Ltd.…...…..........................................…..…..... Respondent Abipn, House No.11, Jal Vihar Colony, Raipur(C.G), Chhatisgarh. [Pan: Aagca5027N] Appearances By: Shri Amuldeep Kaur, Addl. Cit, Appeared On Behalf Of The Appellant. Shri A.K. Tibrewal, Ar & Saurabh Gupta, Fca, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 24, 2024 Date Of Pronouncing The Order : February 27, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Revenue Against The Order Dated 31.01.2020 Of The Commissioner Of Income Tax(Appeals)-4, Kolkata [Hereinafter Referred To As The ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Revenue In This Appeal Has Taken The Following Grounds Of Appeal: “1. On The Facts & In The Circumstances Of The Case, The Ld. Cit(A) Erred In Law In Deleting The Addition Of Rs.2,20,00,000/- Made By The Assessing Officer On Account Of Unexplained Funds Of The Said Amount Received From M/S Solvent Real Estate Pvt. Ltd. 2. On The Facts & In The Circumstances Of The Case, The Ld. Cit(A) Erred In Law In Not Appreciating The Reliability Of The Relevant Substantial Information Received From Investigation Wing Of Kolkata & Also Erred In Ignoring That The Assessing Officer Had Made Efforts To Confront Such

Assessing Officer did not make any independent enquiry and simply relied upon the information of the Investigation Wing and acted on the basis of borrowed satisfaction. It was also submitted that the amount was neither received as share application money nor as secured or unsecured loans or any advance. That

M/S. Dahisar Traders Pvt. Ltd., Kolkata vs. ITO-7(1), Kolkata.

In the result, ITA No. 1069/KOL/2023 is allowed for statistical purposes

Bench: Sri Rajesh Kumar & Sri Anikesh Banerjee

issue notice u/s 148 of the Act, if approved.” 5. Mr. Kataruka, ld. AR has placed that the recorded reason is a borrowed satisfaction and the company who had invested the fund to assessee company, FTL was never be proved as a sham company. So, the entire transaction is valid

M/S.Venus Goods & Supply(P)Td, Kolkata vs. ITO, Kolkata

Bench: Sri Sanjay Garg & Sri Rajesh Kumar

made by AO prior to issue of notice u/s 148 and the same was issued in a mechanical manner without application of mind, on borrowed satisfaction without making any independent enquiry after solely relying on the information passed on by the DDIT (Inv) Wing, Kolkata. 3. That the Ld. Appellate

Tanuj Properties Private Limited., Kolkata vs. I.T.O, Ward-9(1), Kolkata.

In the result, the appeal of the assessee stands allowed

Bench: Shri Sanjay Garg & Shri Girish Agrawali.T.A. No.1045/Kol/2023 Assessment Year : 2012-13 Tanuj Properties Pvt. Ltd. (Successor To Darshan Tradelink Pvt. Ltd……………….…………....Appellant 6Th Floor, Unit-6A, 238A, A.J.C. Bose Road, L.R. Sarani S.O., Kolkata - 700020 [Pan: Aacct4910B] Vs. Ito, Ward-9(1), Kolkata…………….................................…..…..... Respondent Appearances By: Shri Akkal Dudhewala, Ar, Appeared On Behalf Of The Appellant. Shri Bonnine Debarma, Addl. Cit-Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 22, 2024 Date Of Pronouncing The Order : February 19, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 20.09.2023 Of The National Faceless Appeal Centre [Hereinafter Referred To As The ‘Cit(A)’] Passed U/S 250 Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Assessee In This Appeal Has Taken The Following Grounds Of Appeal: “1. A) For That On The Facts & In The Circumstances Of The Case, The Order U/S 147/143(3) Was Passed By The A.O Who Did Not Hold Valid Jurisdiction & Therefore The Impugned Order Being Ab Initio Void Deserves To Be Quashed. B) For That On The Facts & In The Circumstances Of The Case, The Notice U/S 148 Of The Act Was Issued In The Name Of Non-Existent Entity & In

rejected the objections without application of mind. The ld. counsel, in this respect, has submitted that the satisfaction of the Assessing Officer was a borrowed satisfaction. The Assessing Officer after receipt of any information of escapement of income was supposed to correlate the said information with the assessment records ... recorded by the AO are without any application of mind and without recording his own satisfaction and in fact it was a case of borrowed satisfaction as received from DDIT(Inv), Unit-8(3), Mumbai which is not permissible under the law. The case of the assessee finds support from

Subhlaxmi Chem Pvt. Ltd, Kolkata vs. ITO, Ward-12(4), Kolkata

In the result, the appeal of the assessee is allowed

Bench: Shri Rajesh Kumari.T.A. No. 992/Kol/2023 Assessment Year: 2011-2012 Subhlaxmi Chem Private Limited,...........Appellant R. No. C452, 71, B.R.B,B. Road, Bagri Market, Kolkata-700001 [Pan: Aahcs1598R] -Vs.- Income Tax Officer,.................................Respondent Ward-12(4), Kolkata, Aayakar Bhawan, P-7, Chowringhee Square, Kolkata-700069 Appearances By: Shri B.C. Jain, Fca, Appeared On Behalf Of The Assessee Shri Vijay Kumar, Addl. Cit, Appeared On Behalf Of The Revenue Date Of Concluding The Hearing : December 20, 2023 Date Of Pronouncing The Order : February 15, 2024 O R D E R

Court has held that there has to be satisfaction of the Assessing Officer for reopening of the assessment and reopening cannot be made for borrowed satisfaction in a mechanical manner. The Hon’ble Bombay High Court in the above decision has held as under: “20. The reasons recorded

P.L. Goenka HUF, Kolkata vs. ITO, Ward 29/4, Kolkata

In the result, appeal of the assessee is allowed

Bench: Shri Rajpal Yadav, Hon’Ble & Dr. Manish Borad, Hon’Ble

that there is no application of mind by the Assessing Officer for framing the reasons and the reopening is merely on the basis of borrowed satisfaction in the form of information received from the investigation wing. The reasons recorded by the Assessing Officer for reopening the assessee’s case, reads ... /Kol/2023 Assessment Year: 2013-14 P.L. Goenka HUF 7 believe that income has escaped assessment then such reopening of assessments is merely on borrowed satisfaction. This Tribunal in the case of Jai Prakash Gupta (supra) dealing with similar issue of reopening on the basis of information about the bogus long