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2011 (11) TMI 110 - AT - Income TaxIncome Escaping Assessment - reason to belive - AO of the opinion that assessee involved in giving and taking bogus entries/transactions during the relevant year, which is actually unexplained income of the assessee company. assessee failed to disclose fully and truly all material facts and source of these funds routed through the bank account. Held That:- When it is nowhere mentioned as to who had given bogus entries/transactions to the assessee or to whom the assessee had given bogus entries or transactions. It is also nowhere mentioned as to on which dates and through which mode the bogus entries and transactions were made by the assessee, the AO was not justified in forming reason to belive for assessment under 147.Reliance was placed on CIT v. Atul Jain (2007 -TMI - 3917 - DELHI HIGH COURT), in which case the information relied upon by the AO for initiating proceedings u/s 147 of the Act did indicate the source of the capital gain and nobody knew which shares were transacted and with whom the transaction has taken place and in that case there were absolutely no details available and the information supplied was extremely scanty and vague and in that light of those facts, the Hon'ble Jurisdictional Delhi High Court held that initiation of proceedings u/s 147 of the Act by the AO was not valid and justified in the eyes of law
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