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2013 (6) TMI 494 - ITAT AGRAAccommodation entries - income from undisclosed sources - CIT (A) deleted the addition - reopening of assessment - Held that:- A.O. has heavily relied upon the statement of Shri Mahesha Batra. The CIT(A) recorded that the statement recorded by Investigation Wing was not provided to the assessee nor opportunity was given to cross-examine Shri Mahesh Batra. In the light of the fact, DR was directed to place on record the statement of Shri Mahesh Batra vide order sheet entry dated 23.05.2012. Thereafter, a number of opportunities were given to the Revenue but copy of statement of Shri Mahesh Batra has not been placed on record even inspite of last opportunity for this purpose given by us vide order sheet dated 07.03.2013 On perusal of reasons recorded, it is found that the reasons recorded are not in accordance with law as it was simply on the basis of assumption of the A.O. In the reasons recorded, it is stated that "share transactions on which long term capital gain has been claimed do not appear to be genuine". This supports to the fact that the reopening has been made on the basis of presumption and not on reasons to believe, thus, no reasons recorded are in accordance with law. The reasons do not reflect that the A.O. has reason to believe that there is an escapement of income. Once it is found that the reasons are not in accordance with law, the reopening is bad in law. In favour of assessee.
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