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2015 (11) TMI 1800 - AT - Income TaxReopening of assessment u/s 147 - accommodation entries receipt - non independent application of mind by AO - HELD THAT:- In the case on hand, the assessee has submitted that it received ₹ 5 lakhs from M/s Zenith Estates Ltd. on 7.8.2004 vide cheque as advance against sale of property vide agreement on sale dt. 4.8.2004. This fact was recorded in the books of accounts of the assessee and the original return of income contained the audited accounts. This advance received was returned to M/s Zenith Estates Ltd. on 21.03.2009, consequent to cancellation of the agreement to sell. All these documents were with the Assessing Officer. In fact the assessee filed his objections also Copies of all the documents were filed. In the reasons recorded, the Assessing Officer states that, the assessee has received credit of ₹ 5 lakhs and has not reflected it in the books of accounts. This is against the facts of the case. The AO also records that the assessee has accepted that it had taken an accommodation entry. This is also incorrect fact. This is not a case where the share capital is introduced by the company. The amount received as advance was returned. The assessee in his letter dt. 7.12.2011 has specifically asked for the statements of Mr.D.N.Taneja and Shri SK Gupta and ledger account of Sh.G.Taneja and copy of appraisal report in the case of TDS proof. It was specifically stated that Shri DN Taneja was never associated with the assessee company. It is also specifically submitted that Mr.SK Gupta has not mentioned that he received ₹ 5 lakhs in cash in lieu of the cheque issued by Zenith Estates Ltd to the assessee. AO has not independently apply his mind to come to a conclusion that income chargeable to tax has escaped assessment. Thus, the reasons recorded and consequent reopening of the assessment, in my view are bad in law. Hence uphold the statements of the assessee and quash the reopening of the assessment as bad in law. - Decided in favour of assessee.
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