SANJIV KHANNA, J.

1. We have heard counsel for the parties, and with their consent taken the writ petition for final hearing. We have also perused the departmental records which has been produced by the counsel for the respondents.

2. The petitioner, Scan Holding (P) Ltd., has challenged initiation of proceedings under Section 147 read with 148 of the Income Tax Act, 1961 (Act, for short) vide notice dated 31.03.2015 for the Assessment Year (AY) 2008-09.

3. It is accepted and admitted that the original return filed by the petitioner for the AY 2008-09 was not subjected to scrutiny assessment and was processed under Section 143 (1) of the Act. Thus, this is not a case of change of opinion.

4. Reasons to believe, for initiation of proceedings for the AY 2008-09, read :-

"Income Tax Return for the A.Y. 2008•09 was filed by the assessee on 28.09.2008 declaring income of 3,64,26,780/-.

1. Commission on sales received:

In the case, information in the form of complaint of Tax evasion dated 10.12.2014 &12.03.2015 has been received in this office. As per the information received, the company is stated to be involved in money laundering. The company has tried to convert its black money into legitimate business income. The modus operandi of the case is that a company i.e. M/s Ball Corporation (a listed company on NYSE) has incorporated a wholly owned subsidiary in India namely M/s Ball Packaging India Pvt Ltd with the object of installation of beverage can manufacturing amount to the assessee company as bribe to get the various clearances/licences/permission from govt departments. The Ball Corporation has made a payment of Rs. 1,26,20,250/- and Rs. 2,19,71,126/- as commission on sales. The total amount of commission declared was received by a singly cheque by M/s Scan Holdings Pvt Ltd who has also declared this amount as commission of Rs. 1,26,20,250/- in FY 2007-08 pertaining to AY 2008-09 but in fact, no commission has been paid by M/s Ball Corporation. Further the payment is received in foreign currency but shown in Indian currency. As per the complaint, there are no legitimate business activity between two parties which looks like a sham transaction. It could be an accommodation entry transactions which needs to be examined/verified deeply to know the source of income/funds.

2. Income escaped from Investment of Rs. 2,65,734/- in Joint Venture in Singapore; On perusal of the Balance Sheet of the company it is noticed that the company has invested Rs. 2,65,734/- in joint Venture of Scan Holdings Ltd. Singapore.

On perusal of P&L A/c of the company, it revealed that no income from the above investments has been shown by the company resulting in escapement of income. The Escapement of Income cannot be quantified at this juncture but I have reason to believe that some Income has Escapement Assessment

3. Escapement of Income u/s 14A read with Rule 8D:

On perusal of assessee company's computation of income, it is revealed that the assessee had shown exempt dividend income amounting to Rs.2,27,600/- whereas the assessee had not disclosed the expenditure to earn this exempt income as per section 14A read with Rule 8D resulting in escapement of income.

4. Bogus and Personal expenses:

Information has also been received that the assessee has claimed bogus and personal expenses as business expenses to suppress the income and therefore lowering or avoiding the payment of tax. The same issue was also raised in the AY2007-08. However, the amount cannot be quantified at this point of time but I have reason to believe that this issue needs to be scrutinized and this type of expenses is liable to be disallowed,

5. Expenditure on account of Foreign Travelling

It is noticed from perusal of P&L Account that the company has debited Rs.3465948/- as Foreign Travelling in its P&L A/C. The same issue was also raised in the AY2007-08. However, the amount cannot be quantified at this point of time but I have reason to believe that this issue needs to be scrutinized a