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2019 (3) TMI 1063 - ITAT DELHIReopening of assessment - receipt of accommodation entries - proof of independent application of mind by AO - as per AO assessee had not filed any return of income - information received from the Investigation Wing that the assessee was a beneficiary of accommodation entries received from certain established entry operators identified by the Investigation Wing - HELD THAT:- As decided in PR. COMMISSIONER OF INCOME TAX VERSUS RMG POLYVINYL (I) LTD. [2017 (7) TMI 371 - DELHI HIGH COURT] there was a failure of application of mind by the AO as it had proceeded on two wrong premises, one regarding non-filing of the return and second regarding the extent of accommodation entries - The court was unable to discern the link between the tangible material and the formation of the reasons to believe that income had escaped assessment. The information received from the Investigation Wing cannot be said to be tangible material per se without a further inquiry being undertaken by the Assessing Officer and in the present case, the AO had deprived himself of that opportunity by proceeding on the erroneous premise that the assessee had not filed the return when in fact it had. we uphold the findings of the Ld. CIT (A) in holding that the initiation of reassessment proceedings in the instant case was bad in law and not sustainable - Decided in favour of assessee.
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