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2015 (12) TMI 189 - AT - Income TaxAddition u/s 68 on account of alleged bogus accommodation entries - CIT(A) deleted the additions - whether the assessee company had discharged its onus that is lying upon it in terms of the provisions of Section 68 or not? - Held that:- A perusal of the assessment, reveals that the assessee company failed to discharge the initial onus that was lying upon it in terms of the provisions of Section 68 of the Act as he failed to furnish the identity, creditworthiness and genuineness of the transaction of share application money received of ₹ 20,02,030/-. The ld. CIT(A) had deleted the addition solely on the ground that there were no credit in the nature of M/s Garg Finvest Pvt. Ltd. and Shekhawati Finance Pvt. Ltd. In our opinion, the ld. CIT(A) fell in error by holding that the provisions of Section 68 are not applicable to the facts of the present case. Having regard to the modus operandi of accommodation entry providers, the practice of taking cash and receiving cheques in the guise of subscription and share capital consideration in the form of commission, the assessee company had not discharged its initial onus lying upon it, nor rebutted the report of Investigation Wing. Further, we find from the order of the CIT(A) that certain additional evidences/details were filed by way of paper book and there is nothing on record to show that the requirements of the provisions of Section 46A of the Income Tax Rules, 1962 had been complied with by the ld. CIT(A). In the circumstances, we are of the considered opinion that the interest of justice would be served, if the matter is restored to the file of the Assessing Officer for de-novo assessment - Decided in favour of revenue by way of remand. Validity of reassessment proceedings - Held that:- The information received from the Investigation Wing of the Department enabled the Assessing Officer to form an opinion that the income chargeable to tax had escaped assessment. It is trite law that at the stage of initiation of the reassessment proceedings, there need not be conclusive finding on fact against the assessee, only requirement is reasonable belief of the Assessing Officer. See Sowdagar Ahmed Khan Vs. ITO, (1967 (11) TMI 10 - SUPREME Court); Brij Mohan Aggarwal Vs. ACIT (2004 (4) TMI 61 - ALLAHABAD High Court); & Praful Chunila Patel: Vasant Chunilal Patel Vs. Asstt. CIT, (1998 (2) TMI 538 - GUJARAT High Court ). - Decided against assessee
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