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2016 (4) TMI 1438 - AT - Income TaxReopening of assessment u/s 147 - information received from the Investigation Wing of the Department that there was credit shown in the bank account of the assessee coming from the account of Rubik Exports Ltd. - HELD THAT:- Admittedly, the material and statements of some persons on the basis of which the Investigation Wing of the Department claimed to have arrived at a conclusion that the assessee had taken accommodation entry, despite request of the assessee made to the AO, were not supplied to the assessee nor any opportunity to cross examine those persons whose statements were used against the assessee was afforded to the assessee. Even approval of the competent officer has not been obtained as a token of his satisfaction on the reasons recorded by the AO for initiation of reopening proceedings in the manner prescribed under sec. 151 - We thus respectfully following the ratios laid down in the above cited recent decisions in the cases of G & G Pharma India Ltd. [2015 (10) TMI 754 - DELHI HIGH COURT] and Signatures Hotel P. Ltd. [2011 (7) TMI 361 - DELHI HIGH COURT] hold that initiation of reopening proceedings in the present case, merely based on the vague information received from the Investigation Wing of the Department, without application of mind by the Assessing Officer thereupon and in absence of obtaining of approval in the manner provided u/s 151 of the Act, was not valid and the assessment in question framed in furtherance thereto is held void-ab-initio and is accordingly quashed. The ground Nos. 1.1 and 2 are thus allowed. Addition u/s 68 - We find substance in the above submission of the learned senior counsel that by furnishing all the primary evidences like confirmation of share applicant, a public limited company containing their address and PAN, their balance sheet and profit and loss account for the assessment year under consideration, their income-tax return acknowledgement and with this admitted position that the share application money of Rs. 5 lacs has been paid by the share applicant to the assessee through account payee cheque, the assessee had discharged its primary onus to establish the genuineness of the claimed receipt of share application money and the onus was thereafter shifted upon the AO to rebut the same. AO instead has made the addition merely on the basis of information received from the Investigation Wing of the Department alleging that the share applicant is entry provider, summons issued to the share applicant returned unserved and an amount was deposited in the account of the share applicant immediately before issuing cheque for the amount to the assessee. In absence of such discharging of onus shifted upon the AO, AO was not justified in making the addition in question and the Learned CIT(A) without appreciating the above material facts has also erred in sustaining the said addition. We thus while setting aside orders of the authorities below in this regard direct the AO to delete the addition questioned in ground No.1.
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