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2019 (5) TMI 1903 - AT - Income TaxReopening of assessment u/s 147 - eligibility of reasons to believe - Unexplained cash credit u/s. 68 - Sham share transactions - addition of the entire amount of share application money received - HELD THAT:- In the instant case, the non-application of mind to the information is apparent from the fact that the total amount involved was ₹ 3,19,00,000/- and the amount of ₹ 74,00,000/- was advanced by the promoters of the developer company through account payee cheque out of his saving bank account with PNB, which was raised as loan by the assessee. This aspect did not strike to the assessee while making addition of the entire amount of share application money received, whereas the information was received with respect to investment in properties. This fact itself goes to substantiate the non-application of mind for reopening the case. As gone through the reasons recorded, which eloquently speak that the formation of belief has been made only and only on the basis of information received without making any enquiry or pointing out any tangible material in the said reasons recorded. The basis of belief is self explanatory from the reasons recorded, where the AO has mentioned that “in view of the additional information/documents received from the office of Addl. Commissioner of Income Tax Range-5, Firozabad, have reason to belief that the assessee has willfully and knowing concealed its particulars of income to avoid tax and that income chargeable to tax has escaped assessment”. This itself goes to show that the AO was mechanically persuaded by the report of Addl. CIT, Range-5, Firozabad and hence, such a reassessment, in our considered opinion, cannot be sustained being void in law In the instant case, the reassessment proceedings were initiated by the Assessing Officer for making fishing enquiries, which is not permissible at all by resorting to the proceedings u/s. 147 of the Act. In Bir Bahadur Singh Sijwali [2015 (2) TMI 60 - ITAT DELHI] it was held that “Reassessment proceedings cannot be resorted only to examine facts of the case, no matter how desirable that be, unless there is a reason to believe, rather than suspect, that income has escaped assessment.” In rendered in the cases cited above, in the light of reasons recorded in the instant case, we are of the considered opinion that the ld. Authorities below were not justified to sustain the validity of reassessment proceedings being invalid. In the peculiar facts of the present case, do not render any help to the Revenue being distinguishable on facts. The decisions relied by Ld. DR mostly pertain to the merits of the additions made u/s 68. - Decided in favour of assessee.
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