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2014 (10) TMI 314 - AT - Income TaxReopening of assessment proceedings u/s 147 – Addition u/s 68 and 69 – Genuineness of loan taken - Held that:- The reopening has been done only on the basis of the statement and disclosure petition filed by Shri Suresh Kejriwal - This so-called statement and disclosure are the foundation along with the appraisal report - a perusal of the statement from Shri Kejriwal shows that this is the statement taken in the course of survey - This statement loses its evidentiary value in so far as the statement recorded in the course of survey has no conclusive evidentiary value. It is not recorded under oath - the reference to the statement recorded from Shri Kejriwal for the purposes of reopening in the case of the assessee again fails without a foundation, as the assessee’s name is nowhere referred to in the statement recorded on the confessional disclosure - even if an attempt to protect the reopening is made by reference to the disclosure made by Shri Kejriwal even there, there is no reference to the assessee - prima facie, there is no live link nor direct nexus to the statement of Shri Kejriwal of having provided any accommodation entry to the assessee - the reopening is liable to be held to be bad in law. Relying upon Income-Tax Officer, I Ward, Distt. VI, Calcutta, And Others Versus Lakhmani Mewal Das [1976 (3) TMI 1 - SUPREME Court] - reopening of assessment in the case of the assessee for both the assessment years stand cancelled and the assessment orders passed for both the assessment years as a consequence of such reopening also stand cancelled - revenue has not been able to produce any evidence to show that the loan taken by the assessee is an accommodation entry - There is neither any statement nor documentary evidence to question the genuineness of the loan taken and repaid by the assessee – there is no reason to accept the submissions of the department that the additions are required to be made, as suggested by the department - the genuineness of the loan transaction of the assessee with M/s. Saket Vinimay Pvt. Ltd. is liable to be treated as a genuine transaction and the additions upheld by the CIT(A) are to be set aside – Decided in favour of assessee.
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