Balbir Investment Pvt Ltd, New Delhi v. ITO Ward 4(2), New Delhi

ITA 1954/DEL/2019 | 2009-2010
Pronouncement Date: 24-03-2021 | Result: Allowed

Appeal Details

RSA Number 195420114 RSA 2019
Assessee PAN AAACB7397J
Bench Delhi
Appeal Number ITA 1954/DEL/2019
Duration Of Justice 2 year(s) 19 day(s)
Appellant Balbir Investment Pvt Ltd, New Delhi
Respondent ITO Ward 4(2), New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 24-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 24-03-2021
Assessment Year 2009-2010
Appeal Filed On 06-03-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC-1: NEW DELHI (THROUGH VIDEO CONFERENCING) BEFORE SHRI R.K. PANDA ACCOUNTANT MEMBER AND MS. SUCHITRA KAMBLE JUDICIAL MEMBER ITA NO.1954/DEL/2019 ASSESSMENT YE AR : 2009-10 BALBIR INVESTMENT PVT. LTD. C/O-KAPIL GOEL ADV. F-26/124 SECTOR-7 ROHINI DELHI-110085 PAN-AAACB7397J VS. INCOME TAX OFFICER WARD-4(2) NEW DELHI (APPELLANT) (RESPONDENT) APP ELLANT BY : SH. KAPIL GOEL ADVOCATE RESPONDENT BY : MS . SHIVANI BANSAL SR. DR DATE OF HEARING : 09.03.2021 DATE OF PRONOUNCEMENT : 24.03.2021 ORDER PER R.K. PANDA AM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDE R DATED 02.11.2018 OF THE LEARNED CIT(A)-33 NEW DELHI RELATING TO ASSESSMENT Y EAR 2009-10. 2. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE IS A COMPANY INCORPORATED ON 11.06.2008 UNDER THE COMPANIES ACT 195 6. IT FILED ITS RETURN OF INCOME ON 30.09.2009 DECLARING INCOME OF RS.4 900/- . THE RETURN WAS PROCESSED UNDER 143(1) OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT). SUBSEQUENTLY ON THE BASIS OF INFORMATION RECEIVED FROM TH E INVESTIGATION ITA NO.1954/DEL/2019 2 WING OF THE DEPARTMENT THE ASSESSING OFFICER REOPENED THE ASSESSMENT AFTER RECORDING THE FOLLOWING REASONS:- INFORMATION HAS BEEN RECEIVED FROM DDIT (INVESTIGA TION)-UNIT3(3). NEW DELHI VIDE LETTER F.NO. DY.DIT (INV)/UNIT-3(3) 2014 -15/484 DATED 12.03.2015 INTIMATING THAT IN PURSUANCE OF CERTAIN INFORMATION RECEIVED FROM CREDIBLE SOURCES IN THE CASE OF SH. S ALISH MONGA. IT WAS REVEALED THAT DISHA COMMERCIAL PVT. LTD. IS HAVING BANK ACCOUNT NO. 03071 101 1004576 WITH ANDHRA BANK KAMI BAGH. DELH I. ON EXAMINATION IT IS REVEALED THAT THERE IS CASH CRED IT OF RS. 2.8 CRORE DURING OCT-NOV 2011 FOLLOWED BY BACK TO BACK TRANS FER OF THESE AMOUNTS TO VARIOUS INDIVIDUALS AND SOME ENTITIES. I T IS ALSO REVEALED THAT THESE ACCOUNTS HAVE CASH DEPOSITS ON REGULAR B ASIS AND SUCH FUNDS ARE SUBSEQUENTLY TRANSFERRED TO OTHER ENTITIE S. IT WAS ALSO OBSERVED THAT THESE ENTITIES HAVE COMMON DIRECTORS/ ADDRESSES INDICATING THEREBY THAT ALL THESE COMPANIES ENTITIE S BELONG TO SAME GROUP. M/S BALBIR INVESTMENTS PVT. LTD. IS ONE OF S UCH ENTITY. FURTHER EXAMINATION OF BANK STATEMENTS ALSO REVEALE D THAT THERE ARE ALSO FUND TRANSFERS IRON) OTHER ENTITIES. IN FOLLOW ING ENTITIES CASH HAS BEEN DEPOSITED WHICH HAS BEEN FURTHER TRANSFERRED T O M/S BALBIR INVESTMENTS PVT. LTD. ENTITY AND ADDRESS AS PER PASS BOOK PAN ACCOUNT NUMBER NAME AND BRANCH M/S HARVIN EXPORTS PVT. LTD. 1304. PADMA LOWER-I. RAJINDERA PLACE NEW DELHI AAACH1744F 603W03011000310 VIJAYA BANK NARAINA. DELHI 582011016991 ING VYSYA BANK LTD. M/S SHIVAM LEASING PVT. LTD. 1304 PADMA TOWER-1. RAJINDERA PLACE. NEW DELHI AAACS39I2J 5820110112328 ING VYSYA BANK LTD. M/S DISHA COMMERCIAL PVT. LTD. 1304. PADMA TOWER-1. KAIINDERA PLACE. NEW DELHI AAACDI253B 030711011004576 ANDHRA BANK. KAROL BAGH. DELHI ITA NO.1954/DEL/2019 3 1522002100030646 PNB. NEW RAJINDERA PLACE. NEW DELHI MS MADAD LEA SON PVT. LTD. 1304. PADMA TOWER-1. RAJINDERA PLACE. NEW DELHI AAAACM188 4 15220021000.30707 PNB. NEW RAJINDERA PLACE. NEW DELHI M/S SHRAMAN ESTATES PVT. LTD. 1304. PADMA TOWER-1. RAJINDERA PLACE. NEW DELHI AAACS3144 A 603900301000336 VIJAYA BANK. NARAINA. DELHI 582011023751 ING VYSYA BANK SATISH MONGA AND ASSOCIATES. 1304. PADMA TOWER-1. RAJINDERA PLACE. NEW DELHI AAFPM3087D 601020110000210 BANK OF INDIA. VIKASPURI NEW DELHI NANAK COMMERCIAL PVT. LTD. 1304 PADMA TOWER-1. RAJINDERA PLACE. NEW DELHI AA ACN2520K 582011017472 ING VYSYA BANK. WEST PATEL NAGAR. NEW DELHI FROM THE ENQUIRIES MADE ON 111) DATABASE IT IS FOU ND THAT M/S BALBIR INVESTMENTS I'M. LTD IS FILING THEIR ITR AT MINISCULE NEGATIVE BELOW TAXABLE INCOME AND THEIR TURNOVER IS ALSO NOT VERY SIGNIFICANT S.NO. NAME OF COMPANY F.Y. 2008 - 09 F.Y.2009 - 10 F.Y. 2010 - 11 F.Y. 20111 - 12 TURNOV ER PBT TURNOVER BT TURNOVER PBI TURNOVER PBI 1. BALBIR INVESTMENT PVT. LTD. 35346 00 489 9 351164 00 227 16 586560 0 727 5 4534649 2 - 5407 FROM THE INVESTIGATION CARRIED OUT BY THE INVESTIGA TION WING IT HAS BECOME CLEAR THAT ALL THESE COMPANIES ARE NOTIN G BUT PAPER/BRIEFCASE COMPANIES WITHOUT ANY BUSINESS ACTI VITY AND THAT THEIR ACCOUNTS ARE BEING USED TO ROTATE THE FU NDS FOR ACCOMMODATION ENTRIES OF DIFFERENT TYPES TO VARIOUS BENEFICIARIES. IT HAS ALSO BEEN OBSERVED THAT THE SHARES OF GJ HOL DINGS LTD. HAS BEEN PROCURED BY BALBIR INVESTMENTS PVT. LTD. AS PE R DETAILS GIVEN BELOW:- ITA NO.1954/DEL/2019 4 SINCE FOUR YEARS HAS EXPIRED FORM THE END OF THE RE LEVANT ASSESSMENT YEAR AND THE CASE OF THE ASSESSEE HAS NOT BEEN ASS ESSED EARLIER U/S 143(3)/147 OF THE IT ACT 1961. IN VIEW OF THE ABOVE FACTS I AM SATISFIED THAT THE SHARE PREMIUM AMOUNT TO THE EXTENT OF RS. 5 40 000/- IS THE AMOUN T OF BOGUS ACCOMMODATION ENTRY ENTERED INTO BY THE ASSESSEE WH ICH IS LIABLE TO BE ASSESSED IN THE HANDS OF THE ASSESSEE AND HAS ES CAPED ASSESSMENT IN THE ASSESSMENT YEAR 2009-10. THEREFOR E IT IS A FIT CASE FOR INITIATING PROCEEDINGS U/S 147 OF THE ACT AND ISSUE OF NOTICE U/S 148 OF THE ACT. 3. ACCORDINGLY A NOTICE U/S 148 OF THE ACT WAS ISSUED TO THE ASSESSEE. THE ASSESSEE OBJECTED TO SUCH REOPENING WH ICH WAS DISPOSED OF BY ASSESSING OFFICER BY PASSING A SPEAKING ORDER. THE A SSESSING OFFICER THEREAFTER PROCEEDED TO COMPLETE THE ASSESSMENT. HE NOTED THAT THE ASSESSEE HAS RECEIVED SHARE CAPITAL OF RS.5 40 0 00/- FROM CERTAIN PAPER/BRIEFCASE COMPANY WITHOUT ANY BUSINESS AC TIVITY AND THAT THEIR ACCOUNTS ARE BEING USED TO ROTATE THE FUNDS FOR ACCOMMODATION ENTRIES OF DIFFERENT TYPES TO VARIOUS BENEFIC IARIES. HE THEREFORE ASKED THE ASSESSEE TO PROVE THE IDENTITY AND CREDITWORTHINESS OF THE SHARE APPLICANT AND GENUINENESS OF THE TRANSACTION WITHIN THE MEANING OF SECTION 68 OF THE ACT. SINCE THE ASSESSEE FAILED TO SUBSTANTIATE THE IDENTITY AND CREDITWORTHINESS OF THE INVE STOR COMPANY AND GENUINENESS OF THE TRANSACTION TO HIS SATISFACTION TH E ASSESSING OFFICER INVOKED THE PROVISIONS OF SECTION 68 OF THE ACT A ND MADE ADDITION OF RS.5 40 000/-. SIMILARLY HE NOTED THAT ASSESSEE MUST HAVE S. NO. NAME OF THE COMPANY/ENTITY DATE NUMBER OF SHARES NOMINAL VALUE PREMIU M TOTAL INCLUDING PREMIUM OUTSTANDING IN R.S.) 1 BALBIR INVESTMENTS PVT. FTD. 28.03.2009 5400 10 90 5 40 000/ - ITA NO.1954/DEL/2019 5 INCURRED CERTAIN EXPENDITURE FOR OBTAINING THE ACCOMMODA TION ENTRY WHICH IS NORMALLY 1.8%. APPLYING THE SAME RATE THE ASSE SSING OFFICER MADE AN ADDITION OF RS.9 720/-. HE THEREFORE MADE AN ADDI TION OF THE SAME. THE ASSESSING OFFICER ACCORDINGLY ASSESSED THE TOTA L INCOME OF THE ASSESSEE AT RS.5 54 460/-. 4. BEFORE THE LEARNED CIT(A) THE ASSESSEE APART FROM CH ALLENGING THE ADDITION ON MERIT CHALLENGED THE VALIDITY OF REOPENING OF THE ASSESSMENT. HOWEVER THE LEARNED CIT(A) WAS NOT SATISFIED WITH THE ARGUMENTS ADVANCED BY THE ASSESSEE AND DISMISSED THE GROUNDS OF CHALLENGING THE VALIDITY OF REASSESSMENT PROCEEDINGS AND U PHELD THE ADDITION MADE BY THE ASSESSING OFFICER. 5. AGGRIEVED WITH SUCH ORDER OF THE LEARNED CIT(A) THE A SSESSEE IS IN APPEAL BEFORE THE TRIBUNAL BY RAISING THE FOLLOWING GROUNDS:- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF TH E CASE AND IN LAW ID CIT-A ERRED IN SUSTAINING THE ORDER PASSED BY LD AO U/S 147/143(3) WITHOUT APPRECIATING THAT ASSUMPTION OF JURISDICTION U/S 148 WAS BY LD AO WAS IN VIOLATION O F MANDATORY JURISDICTIONAL CONDITIONS STIPULATED UNDER THE ACT; 1.1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW ID CIT-A ERRED IN SUSTAINING THE ORDER PASSE D BY LD AO U/S 147/143(3) WITHOUT APPRECIATING THAT ASSESSEES SEMINAL OBJECTION THAT REASONS RECORDED IN INSTANT C ASE ARE BASED ON NON EXISTING FACTS AND ERRONEOUS AND INCORR ECT GROUNDS AS FIRSTLY BASIS OF REASONS RECORDED BEING INVESTMENT OF RS 540000 MADE BY ASSES SEE IN G.J. HOLDING PVT LTD BY ITSELF CANT BE GROUND TO FORM REA SONS TO BELIEVE THAT INCOME HAS ESCAPED ASSESSMENT SECONDLY WHERE ASSESSEE IN ITS REPLY TO LD AO/CIT-A HAS CLARIFI ED THAT SAID INVESTMENT IS DULY RECORDED IN BOOKS OF B OTH COMPANIES AND FINALLY WHILE MAKING ADDITION OF RS.5 40 000 IN ASSESSMENT ORDER LD AO HAS MADE A SOMERSAULT AND TREATED THE SAME AS SHARE CAPITAL REED BY ITA NO.1954/DEL/2019 6 ASSESSEE WHICH IS IN CLEAR OPPUGNATION TO REASONS REC ORDED AND CORRECT FACTS (AS ASSESSEE CLARIFIED WITH PERSPIC ACITY THAT NO SHARE CAPITAL IS REED BY ASSESSEE FROM M/S G.J . HOLDING PVT LTD) THUS DEPICTING THERE IS COMPLETE NON APPLICATION OF MIND AT ALL STAGES BE IT REASONS RECORDING OBJECTION DISPOSAL AND FINAL ORDER PASSING ERGO ENTIRE PROCEEDINGS SUFFERS FROM SERIOUS AND INCURABLE DEFECT S WHICH REQUIRES ORDERS PASSED MAY PLEASE BE QUASHED AN D RETURNED INCOME MAY BE RESTORED. 1.2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW ID CIT-A ERRED IN SUSTAINING THE ORDER PASSE D BY LD AO U/S 147/143(3) WITHOUT APPRECIATING THAT RUBBER STAMP REASONS IN PRESENT CASE ARE BASED ON BORROWED SATISFACTION AND ARE WITHOUT INDEPENDENT APPLICATION O F MIND AND EVEN NO REQUISITE AND APPROPRIATE ENQUIRY IS MADE INTO VALID RETURN FILED BY ASSESSEE BEFORE FORM ULATING PURPORTED BELIEF (LIKE ISSUE OF ENQUIRY NOTICE TO ASSES SEE) WHICH SO CALLED BELIEF SUFFERS FROM LACK OF LIVE NEXU S AND IS BASED ON MERE PRETENCE ONLY; 1.3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW ID CIT-A ERRED IN SUSTAINING THE ORDER PASSE D BY LD AO U/S 147/143(3) WITHOUT APPRECIATING THAT APPROVAL OF HIGHER AUTHORITY (ALTHOUGH NOT CONFRONTED TO ASSESSE E) IS ALSO WITHOUT REQUISITE APPLICATION OF MIND AND IS GIVEN IN MECHANICAL MANNER AS EVIDENT FROM ABOVE DISCUSSION; 1.4. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW ID CIT-A ERRED IN SUSTAINING THE ORDER PASSE D BY LD AO U/S147/143(3) AS NONE OF THE ASSESSEE SUBMISSION IS APPRECIATED WHILE ADJUDICATING THE APPEAL; 2. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW ID CIT-A ERRED IN SUSTAINING THE ORDER PASSE D BY LD AO U/S 147/143(3) WITHOUT APPRECIATING THAT STATED ADDITION FOR RS.5 40 000 & RS 9720 ON A/C OF ALLEGED SHA RE CAPITAL REED BY ASSESSEE FROM G .J.HOLDINGS PVT LTD AS ACCOMMODATION ENTRY WHICH IS FACTUALLY INCORRECT AND BA SED ON WRONG ASSUMPTION AND PRESUMPTION WHICH IS DULY CLARIFIED AT LD AO AND LD CIT-A STAGE THAT NO SUCH S HARE CAPITAL IS RECD BY ASSESSEE IN PERIOD UNDER CONSIDERAT ION FROM GJ'.HOLDINGS PVT LTD THUS ENTIRE PROCEEDINGS SUF FERS FROM SERIOUS AND INCURABLE DEFECTS WHICH REQUIRES ORD ERS PASSED MAY PLEASE BE QUASHED AND RETURNED INCOME MAY BE RESTORED. 3. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND ITA NO.1954/DEL/2019 7 IN LAW ID CIT-A ERRED IN NOT RESTORING THE RETURNED INCOME DECLARED BY ASSESSEE IN ITS RETURN OF INCOME. 6. THE LEARNED COUNSEL FOR THE ASSESSEE REFERRING TO T HE REASONS RECORDED DREW THE ATTENTION OF THE BENCH TO PAGE-2 OF THE SAME AND SUBMITTED THAT AS PER REASONS RECORDED SHARES OF G.J. H OLDING LTD. HAS BEEN PROCURED BY BLABIR INVESTMENTS PVT. LTD. HOWEVER THE ASSESSING OFFICER IN THE ASSESSMENT ORDER HAS MADE ADDITION ON THE GROUND THAT THE ASSESSEE HAS RECEIVED SHARE CAPITAL/PREMIUM OF RS.5 40 000/ - FROM M/S G.J. HOLDINGS LTD. THUS THERE IS CONTRADICTION BETWEEN THE REASONS RECORDED AND THE ASSESSMENT MADE. THUS THERE IS COMPLE TE NON- APPLICATION OF MIND BY THE ASSESSING OFFICER. THEREFORE THE R EASSESSMENT SHOULD BE QUASHED ON THIS REASON ITSELF SINCE THE REASO NS ARE BASED ON NON-EXISTING FACTS. HE ACCORDINGLY SUBMITTED THAT THE REA SSESSMENT PROCEEDINGS INITIATED BY THE ASSESSING OFFICER SHOULD BE QUASHED. 6.1. REFERRING TO THE DECISION OF HONBLE DELHI HIGH COURT IN THE CASE OF RANBAXY LABORATORIES LTD. REPORTED IN 336 ITR 136 (DEL.) HE SUBMITTED THAT THE HONBLE DELHI HIGH COURT IN THE SAID DE CISION HAS HELD THAT UNDER EXPLNATION-3 IF DURING THE COURSE OF REASSESSM ENT PROCEEDINGS THE ASSESSING OFFICER COMES TO CONCLUSION THAT SOME ITEMS HAVE ESCAPED ASSESSMENT THEN NOTWITHSTANDING THAT THOSE ITEMS WERE NOT INCLUDED IN THE REASONS TO BELIEVE AS RECORDED FOR INITIATION OF THE P ROCEEDINGS AND THE NOTICE HE WOULD BE COMPETENT TO MAKE ASSESSMENT OF TH OSE ITEMS. FOR EVERY NEW ISSUE COMING BEFORE AO DURING THE COURSE OF PR OCEEDINGS OF ASSESSMENT OR REASSESSMENT OF ESCAPED INCOME AND WHICH HE INTENDS TO ITA NO.1954/DEL/2019 8 TAKE INTO ACCOUNT HE WOULD BE REQUIRED TO ISSUE A FRESH NOTICE U/S 148 OF THE ACT. THEREFORE IN THE PRESENT CIRCUMSTANCES WHEN TH E ASSESSEE INSTEAD OF INVESTING ANY MONEY IN G.J. HOLDINGS LTD. HAS RECEIVED AN AMOUNT OF FROM G.J. HOLDING LTD. THE ASSESSING OFFICER COULD HAVE ISSUED FRESH NOTICE AND HE COULD NOT HAVE PROCEEDED ON THE BASIS OF NON-EX ISTENT OR WRONG/ERRONEOUS FACTS FOR REOPENING OF THE ASSESSMENT. 7. THE LEARNED DR ON THE OTHER HAND HEAVILY RELIED ON THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). HE SUBMITTED THAT THE ASSESSING OFFICER ON THE BASIS OF INFORMATION OBTAINED FROM THE INVESTIGATION WIN G HAS REOPENED THE ASSESSMENT. SINCE THE INVESTIGATION WING IS A PART OF THE DEPARTMENT AND CREDIBLE INFORMATION WAS OBTAINED THEREFORE THE ASSESSEE CANNOT SAY THAT THE REASSESSMENT PROCEEDINGS ARE NOT IN ACCORDANCE WITH LAW. HE ACCORDINGLY SUBMITTED THAT THE GROUNDS RAISED B Y THE ASSESSEE ON THIS ISSUE SHOULD BE DISMISSED. FURTHER THE ASSESSEE COU LD NOT SUBSTANTIATE THE IDENTITY AND CREDITWORTHINESS OF THE INVE STOR COMPANY AND THE GENUINENESS OF THE TRANSACTION EITHER BEFORE THE ASS ESSING OFFICER OR THE CIT(A) OR EVEN BEFORE THE TRIBUNAL. THEREFORE UNDER THESE C IRCUMSTANCES THE ADDITION MADE BY THE ASSESSING OFFICER AND UPHELD BY T HE CIT(A) SHOULD BE CONFIRMED AND REASSESSMENT PROCEEDINGS SHOULD ALSO BE HELD AS V ALID. 8. WE HAVE CONSIDERED THE RIVAL ARGUMENTS MADE BY BOTH THE SIDES PERUSED THE ORDERS OF THE AO AND THE CIT(A) AND T HE PAPER BOOK FILED ON BEHALF OF THE ASSESSEE. WE HAVE ALSO CONSIDERED THE VARIOUS DECISIONS CITED BEFORE US. A PERUSAL OF THE REASONS RECORDED BY T HE ASSESSING OFFICER SHOWS THAT HE HAS REOPENED THE ASSESSMENT BY RECORD ING THE REASONS THAT ITA NO.1954/DEL/2019 9 SHARES OF G.J. HOLDINGS HAS BEEN PROCURED BY BLABIR INVES TMENTS PVT. THE RELEVANT OBSERVATIONS OF THE ASSESSING OFFICER IN THE REASO NS RECORDED BY THE ASSESSING OFFICER HAVE ALREADY BEEN REPRODUCED IN T HE EARLIER PARAGRAPHS WHICH CLEARLY SHOW THAT THE CASE OF THE ASS ESSEE WAS REOPENED ON THE GROUND THAT IT HAS INVESTED IN THE SHARES G.J. HO LDING LTD. TO THE EXTENT OF RS.5 40 000/-. HOWEVER THE ASSESSMENT ORDER S HOWS THAT THE ASSESSING OFFICER MADE AN ADDITION OF RS.5 40 000/- U/S 68 O F THE ACT ON THE GROUND THAT THE ASSESSEE HAS RECEIVED BOGUS SHAR E CAPITAL/PREMIUM OF RS.5 40 000/- FROM G. J. HOLDING LTD. THUS THERE IS CONTRADICTIO N IN THE REASONS RECORDED AND THE ASSESSMENT MADE. THERE IS COMPLETE NON- APPLICATION OF MIND BY THE ASSESSING OFFICER WHILE RECORDING TH E REASONS FOR REOPENING THE ASSESSMENT. THE ASSESSMENT WAS BASICALLY REOPENED ON THE BASIS OF INFORMATION OBTAINED FROM THE INVESTIGATION WING AND WITHOUT DUE APPLICATION OF MIND BY THE ASSESSING OFFICER AND SUCH REOPEN ING WAS ON BORROWED SATISFACTION. IT HAS BEEN HELD IN VARIOUS DECISIO NS OF HONBLE HIGH COURTS AND THE CO-ORDINATE BENCHES OF THE TRIBUNAL THAT REOPENING OF ASSESSMENT ON THE BASIS OF BORROWED SATISFACTION AND WITH OUT INDEPENDENT APPLICATION OF MIND BY THE ASSESSING OFFICER MAKES SUCH REAS SESSMENT A NULLITY. SINCE THE ASSESSING OFFICER IN THE INSTANT CASE HAS REOPENED THE ASSESSMENT ON THE BASIS OF INFORMATION OBTAINED FROM THE I NVESTIGATION WING THAT IT HAS INVESTED IN THE SHARES OF G.J. HOLDINGS LTD . WHEREAS IN THE ASSESSMENT ORDER THE ASSESSING OFFICER HAS FINALLY CON CLUDED THAT THE ASSESSEE HAS RECEIVED AN AMOUNT OF RS.5 40 000/- FROM G. J. HOLDING LTD. IN SHAPE OF SHARE CAPITAL AND SHARE PREMIUM THEREFORE IT C LEARLY SHOWS THAT THERE IS COMPLETE NON-APPLICATION OF MIND BY THE ASSE SSING OFFICER ITA NO.1954/DEL/2019 10 WHILE REOPENING THE ASSESSMENT THEREFORE SUCH REOPENING OF THE ASSESSMENT WHICH IS BASED ON IRRELEVANT OR NON-EXISTENT FACTS MAKES THE REASSESSMENT PROCEEDINGS A NULLITY. WE THEREFORE QUASH T HE REASSESSMENT PROCEEDINGS INITIATED BY THE ASSESSING OFFICER WHICH HAS BEE N UPHELD BY THE CIT(A). THE GROUNDS RAISED BY THE ASSESSEE ARE ACCORDINGLY ALLO WED. 9. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24.03.2021 SD/- SD/- (SUCHITRA KAMBLE) (R.K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER DELHI/DATED- 24.03.2021 F{X~{T COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ITAT BY ORDER ASSISTANT REGISTRAR ITAT DELHI