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2012 (12) TMI 128 - AT - Income TaxRe-opening of Assessment - application of his mind by the AO before issuance of notice u/s 148 - Held that:- a precise and definite information was received by the AO regarding receipt of accommodation entries in respect of capital from various persons aggregating to ₹ 14.45 lakh. He compared the information with the information available in the return of the assessee. As the information could not be matched, he recorded definite reasons in clear terms that income escaped assessment. - AO rightly reopened the assessment by adhering to the relevant provision and following the right procedure provided under the rule. - Decided against the assessee. Defect in issuance of notice u/s 143(2) for the purpose of reassessment - held that:- The only missing words are "any evidence on which the assessee may rely in support of the return". Absence of these words may lead to prima facie view that the notice does not conform to the statutory language. However, section 292B provides that no notice etc. issued or purported to have been issued in pursuance of any of the provisions of the Act shall be invalid or shall be deemed to be invalid merely by reason of any mistake, defect or omission in the notice provided that such notice is in substance and effect in conformity with or according to the intent and purpose of this Act. - Decided against the assessee. Addition u/s 68 - accommodation entries - held that:- latest decision [COMMISSIONER OF INCOME TAX VERSUS NOVA PROMOTERS & FINLEASE (P) LTD (2012 (2) TMI 194 - DELHI HIGH COURT)] covers plethora of cases on the subject. It does appear to us that this case makes a distinction between credits simplicitor and credits received through hawala operators, the bank accounts of which are spurious in the sense that most of the entries are in respect of debits and credits of the same amount with very little balance staying in the account at any other point of time. - Decided against the assessee.
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