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2019 (12) TMI 663 - AT - Income TaxReassessment proceedings u/s.147 - as argued issue of notice u/s.148 without application of mind on the material provided by the Investigation Wing of the Department and giving mechanical approval of 151(2) with proper satisfaction and reasons and competent authority - HELD THAT:- Where the content of the notice are correct and which has been issued in the correct context then typographical error in address of PAN does not have material impact as per provisions of section 292B of the Act. We, further find that the assessee has duly received the notice u/s.148 of the Act and duly participated in the assessment proceedings and also stated that the original return filed by it may be treated as return in response to notice u/s.148, therefore any defect in the notice presumed to have been validly served as per provisions of section 292BB of the Act. With regard to contention of the assessee that the AO has failed to apply his mind and notice has been issued without application of mind, we find that the AO was in possession of the information from the ACIT, Central Circle-10, New Delhi which stated that the parties under consideration from whom the assessee has shown transactions were only accommodation entry provider, which was admitted in their statement recorded u/s.131 of the Act. We, further note from the reasons recorded at para 2, page 36 that the AO has categorically mentioned that he has scrutinized the audited accounts for the assessment year ending March 2006 which shows that the assessee has disclosed these transactions but the fact that the assessee company has obtained accommodation entries from the above mentioned three entities controlled by Shri Rakesh Gupta, Shri Vishesh Gupta, Shri Navneet Jain and Shri Vaibhav Jain was not disclosed. The entry provider entries did not have any genuine business activity as admitted before ACIT, Central Circle-10, New Delhi, therefore, the AO had reason to believe that by the taxable income represented the transactions with the above cited entities escaped assessment due to failure on the part of the assessee company to disclose material facts truly and fully necessary to make assessment for A.Y. 2006-07. Thus, we find that the AO has duly applied his mind and verified the information from the audited accounts of the assessee. Therefore, the contention of the ld.Counsel that the notice u/s.148 has been issued without application of mind does not hold water. - Decided against assessee.
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