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2016 (1) TMI 1161 - AT - Income TaxReopening of assessment - assessee had allotted shares to and borrowed money from the companies which were associated with companies operating a scandal of accommodation entries - Held that:- From the above facts it is clear that the assessee had duly filed its return of income u/s 139(1) and also filed all the necessary records/details/confirmations before the AO who completed the assessment after examining the records and recorded his satisfaction in assessment order itself by way of office note and thus it is a case where the income had definitely not escaped because of the assessee having failed to make full and true disclosure as envisaged in the 1st proviso to section 147 of the Act and the AO had wrongly assumed jurisdiction to re-open the assessment. It is also clear from the reasons recorded that assessment was reopened on the basis that the assessee had allotted shares to and borrowed money from the companies which were associated with Mr Mukesh M Chokshi and his company M/S Mahasagar Securities Pvt. Ltd which were operating a scandal of accommodation entries and since the said information was not available with the AO at the time of original assessment and thus assessee had failed to disclose all material facts fully and truly. However in our opinion the assessee had fully disclosed all the facts qua allotment of shares and receiving loans and even filed confirmations from all these companies. - Decided in favour of assessee.
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