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2014 (12) TMI 1282 - AT - Income TaxValidity of reopening of assessment - share application received by the assessee is not a genuine transaction but is on account of accommodation entries received thus addition u/s 68 - Held that:- Reasons are nothing but the summary of statement of Shri Giriraj Vijayvargiya during the search as well as the assessment proceedings of Shri Giriraj. It is manifest from these reasons recorded by the Assessing Officer that four concerns are mentioned which are controlled by Shri Vikas Berlia in which the allegation of giving accommodation entries in the shape of share application money was made by Shri Giriraj in his statement. There is no allegation of AO that the share applicants of the assessee have any connection with Shri Giriraj Vijayvargiya or with Shri Vikas Berlia. Once these share applicant companies are unrelated/independent parties and have no connection either with Shri Giriraj or with Shri Vikas Berlia then there was nothing came to the possession of the Assessing Officer to believe that the share application money received by the assessee is bogus transaction and consequently the income assessable to tax has escaped assessment. From the reasons recorded by the Assessing Officer, there is no indication about the relation between the share application money and the bogus accommodation entries given by Shri Giriraj. The sufficiency of evidence or material for forming the belief is not open to scrutiny but the existence of belief is must for a valid exercise of power. The reasons recorded by the Assessing Officer do not indicate even a remote nexus between the application money received by the assessee with the alleged accommodation entries provided by Shri Giriraj Vijayvargiya or the alleged beneficiary of the accommodation entries. - Decided in favour of assessee.
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