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2015 (11) TMI 65 - AT - Income TaxReopening of assessment - receipt of accommodation entry - Held that:- n a perusal of the reasons recorded for re-opening of the assessment in the impugned assessment year as well as the reasons recorded for re-opening the assessment in assessee's own case in the assessment year 2003-04, which is extracted in entirety in the order of the co-ordinate bench under reference, the reasons are found to be identical. No 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. If it is impossible for any prudent person to form a belief on the basis of material or evidence that the income chargeable to tax has escaped assessment and reason which have been recorded would not lead to a prudent person to form an opinion that the income has escaped assessment within the meaning of section 147 then the action of the Assessing Officer in reopening the assessment u/s 147/148 is contrary to the powers permitted under the said provisions of Act. In the case in hand, 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. Accordingly, in the facts and circumstances of the case, we hold that the reopening in these cases are not valid and consequently the same is quashed - Decided in favour of assessee
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