Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (9) TMI 182 - ITAT MUMBAIReopening of assessment u/s 147 - information from Investigation Wing of the I.T. Department was received with regard to the bogus accommodation entries - 'suspicion’ v/s 'reason to believe' - we thereby allow this ground of appeal filed by the assessee. assessee contended that the AO has erroneously stated that the assessee did not file its return of income for A.Y. 2009-10 in his reasons for reopening the assessee’s case - HELD THAT:- Upon perusal of the reasons for reopening as stated by the AO wherein as specified that the assessee has failed to file his return of income for the impugned year has been rebutted by the assessee by furnishing the copy of the details of the returns. Assessing Officer ought to have verified the same. The balance-sheet filed by the assessee reflects the unsecured loan of Rs.65 lakhs availed in F.Y. 2008-09 from M/s Seven Star Gems Pvt Ltd. The bank statements also corroborates the said transaction. AO has the jurisdiction to reopen an assessment only when he has reason to believe that income chargeable to tax has escaped assessment. This reason must be on concrete facts. In the present case in hand, it is observed that the Assessing Officer was of the view that the assessee has failed to file its return of income for the impugned year under section 139(1), which, in itself was an incorrect fact. We would place our reliance on the decision of the Hon’ble Apex Court in the case of NRA Iron & Steel Pvt Ltd [2019 (3) TMI 323 - SUPREME COURT] wherein the assessee has discharged the onus by furnishing details regarding the identity, creditworthiness and genuineness of the impugned transaction, the onus shifts to the Revenue. In the present case in hand, the Assessing Officer has failed to prove beyond doubt that the impugned transaction pertaining to the unsecured loan given by M/s Seven Stars Gems Pvt Ltd was only an accommodation entry. We are of the considered opinion that the Assessing Officer has reopened the assessment only on the basis of ‘suspicion’ and not on “reason to believe”, we thereby allow this ground of appeal filed by the assessee.
|