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2018 (12) TMI 1819 - AT - Income TaxReopening of assessment u/s 147 - Bogus purchases addition - information received from investigation wing of the department - borrowed satisfaction v/s independent application of mind - HELD THAT:- On the basis certain information received from the Investigation Wing Mumbai, the AO has not just formed an opinion but has finally concluded that the assessee has benefitted by obtaining accommodation entries from M/s New Planet Trading Co Ltd. - AO has stated that since the assessee has not filed the return of income as per AST system of the department, he has reasons to believe that income has escaped assessment. Such an approach of the AO where, based on information received in context of a third party, even before issuance of notice u/s 148 has concluded that assessee has obtained accommodation entries and income to that extent has escaped assessment is not a correct approach in the eyes of law. As held in case of M/s Shodiman Investments [2018 (4) TMI 1287 - BOMBAY HIGH COURT] the material in possession of the AO has to be further linked by any reason to come to conclusion that the assessee has indulged in any activity which could give rise to reason to believe that income chargeable to tax has escaped assessment - unless the AO carries out the further examination after receipt of initial information from the Investigation wing, how can he conclude that income has escaped assessment. It is a fact that the assessee has filed her return of income. AO should have examined her return of income and carried out initial investigation before coming to the conclusion that income has escaped assessment. - Decided in favour of assessee.
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