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2016 (7) TMI 137 - HC - Income TaxReopening of assessment - reasons to believe - receipt of accommodation entries - Assessee's return was accepted without scrutiny - 148 notice issued - Held that:- If AO had reasons to believe that income chargeable to tax had escaped assessment, it would be open for him to re-open assessment by recording proper reasons and issuing notice. Since the original assessment was without scrutiny, the question of change of opinion would not arise. At the stage of issue of notice, what is required is “reason to believe” and not the established fact of escapement of income. Relied on Rajesh Jhaveri Stock Brokers P. Ltd. (2007 (5) TMI 197 - SUPREME Court) In the instant case, in reasons recorded AO pointed out that from the information received from the investigation wing, one Hawala entry operator stated on oath that he had provided accommodation entries to many companies including assessee company. In our opinion, such reasons cannot be stated to be irrelevant or mechanically recorded. This is not a case for quashing notice for re-opening. Merely because the order disposing of objections raised by assessee does not satisfy the assessee, would not be a ground to invalidate notice for re-opening - Decided against assessee.
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