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2022 (7) TMI 1503 - HC - Income TaxReopening of assessment u/s 147 - jurisdictional requirement ‘reason to believe’ - accommodation entries receipt - whether the reopening of the assessment as done by the assessing officer was justified? - assessee, on earlier bogus bill, has made accommodation entry - said allegation was made based upon a statement recorded from one Entry Operator - tribunal pointed out that in the reasons recorded for reopening, nowhere the assessee’s name has been specifically mentioned by Entry Operator, nor there is anything adverse against the assessee -. HELD THAT:- The assessee was found to have transacted with the said company through banking channel and faulted the assessing officer for reopening the assessment based on the statement of Shri Jindal which was a general statement and that the assessing officer assumed that the assessee is a beneficiary of the account. Furthermore, the tribunal pointed out that the just because the assessee had transaction with M/s. Bridge & Building Construction Co. Ltd. it cannot be a ground to believe that the assessee’s income escaped assessment. It was further held that without any other material as discussed, the conclusion drawn by the assessing officer, merely on receipt of the aforesaid information does not master the requirement of law to validly form the reason to believe escapement of income. Accordingly, the appeal filed by the revenue was dismissed. After considering the submissions made on either side and carefully perusing the materials placed before us, we find that the entire matter is factual and the reopening itself was made on wrong presumption of facts. No substantial question of law.
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