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2011 (10) TMI 624 - ITAT DELHIReopening of assessment - Held that:- The first sentence in the reasons is about information regarding receipt of two manager’s cheques by the assessee and second sentence holds these cheques received from shri Harish Pawar to be accommodation entries. The basis for holding the amount of ₹ 10 lacs as accommodation entry is nowhere evident from these recorded reasons not there is any material that the amount was escaped income. Not even a whisper has been made in the reasons regarding basis or material for mentioning the amount of aforesaid two manager’s cheques as accommodation entries. The aforesaid reasons recorded are not at all self-explanatory and keep any reasonable person guessing as to how the receipt of two cheques become accommodation entries. Therefore, it appears from the reasons that the AO without applying his mind properly, issued notice u/s 148 of the Act. The very basis for reopening of assessment is mere assumption of the AO and the reopening cannot be sustained on the assumptions and surmises and he never cared to verify the factual position correctly. The reopening of assessment made by the AO is invalid and liable to be quashed.
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