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2019 (12) TMI 977 - ITAT DELHIReopening of the assessment u/s 147 - addition on account of accommodation entry - addition of unexplained deposit - HELD THAT:- Notice u/s 148 have not be served upon the assessee and no further evidence have been produced on record, if any attempt have been made to serve the notice upon the assessee personally. A.O. in the assessment order has noted that notice u/s 148 have been served later on through affixture for which no record have been produced to satisfy the requirements of Law whether notice through affixture have been served in accordance with Law. These facts considering the fact that incorrect address have been recorded in the speed post record would clearly reveal that no notice under section 148 have been served upon the assessee. Therefore, assumption of jurisdiction under section 147 is clearly illegal and bad in Law. It may also be noted here that the A.O. in the reasons recorded for reopening of the assessment has merely recorded that ₹ 15 lacs accommodation entry taken by the assessee has escaped assessment. However, at the re-assessment stage, A.O. made further addition of ₹ 52.91 crores on account of deposits in the bank account of the assessee. No reasons have been mentioned as to why such addition have been made and what was the purpose in making the addition. The entire deposit in the Bank account of the assessee could never be unexplained. Even the Investigating Agency have not made any allegation against the assessee if that amount was an accommodation entry taken by the assessee ? D.R. admitted that no notice have been issued by the A.O. while proposing to make this addition of ₹ 52.91 crores. We are of the view that A.O. has recorded non-existing, incorrect and wrong facts in the reasons recorded for reopening of the assessment. A.O. did not applied his mind to the report of Investigation Wing. A.O. merely believed report of Investigation Wing without making further scrutiny at the assessment. The A.O. merely reproduced report of Investigation Wing without making further scrutiny of the same. The A.O. merely reproduced report of Investigation Wing and crux of statement of Shri Kishori Sharan Goel for reopening of the assessment in the matter. It was merely a borrowed satisfaction without application of mind. Initiation of re-assessment proceedings in the instant case is illegal, bad in law and is liable to be quashed. In this view of the matter, we set aside the orders of the authorities below and quash the reopening of assessment under section 147/ 148 - Decided in favour of assessee.
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