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2020 (12) TMI 1378 - AT - Income TaxValidity of Reopening of assessment u/s 147 - Addition u/s 68 - reasons to believe - Allegation of non independent application of mind and unwarranted and in a mechanical manner and is not sustainable in the eyes of law - HELD THAT:- We find that initiation of assessment are on Wrong and non-existing facts, because it mentions that “M/s. Binary Semantics Ltd.” is shown to have received following entries”. Thereafter 07 entries have been given for which re-asstt. proceedings have been initiated. The initiation has been done for Rs. 2,47,50,000/- from 07 parties against correctly received only Rs. 1,10,00,000/- from 03 parties. In the reasons, M/s. Binary Semantics Ltd. has been shown as beneficiary. Assessee has got no connection with this company. Hence, it is a wrong reason/wrong basis of initiation. Further, Chart of Co’s from whom amount has been received has been given in reasons that first 04 parties (1,37,50,000/-) are wrongly mentioned. No amount has been received from them. In this case initiation of reopening proceedings is mechanical and Non-application of Mind and Borrowed satisfaction because the initiation is on the basis of report of Inv. wing only; No prime facie enquiry done by A.O. before initiating proceedings; Hence, it is a case of initiation on wrong facts and on borrowed satisfaction without application of mind which makes the proceedings un-sustainable. Our view is fortified by the decision of Sarthak Securities Co. (P) Ltd. [2010 (10) TMI 92 - DELHI HIGH COURT] wherein it has been held that no independent application of mind by the AO by acting under information from Inv. Wing. – Notice u/s. 147 to be quashed. Limitation Period - As we have perused the documentary evidences filed by the assessee especially the notice u/s. 148 of the Act prepared by the AO and sent to post office and delivered to the assessee as stated by the Ld. Counsel for the assessee. As in the case of Kanubahi M. Patel (HUF) vs. Hiren Bhattr [2010 (7) TMI 704 - GUJARAT HIGH COURT] the assessment is barred by limitation and hence, null and void. Thus reopening of assessment orders quashed - Decided in favour of assessee.
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