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2016 (7) TMI 406 - HC - Income TaxReopening of assessment - application of mind - recording of satisfaction - Held that:- We may recall that the return filed by the petitioner for the assessment year in question was accepted under Section 143(1) of the Act without scrutiny. In that view of the matter, the question of change of opinion would not arise since obviously the Assessing Officer had no occasion to form an opinion regarding any of the aspects of the petitioner's return. On receipt of the imported consignments, the same would be handed over to the actual importer and the bogus stock would be entered in the books of benami entities and would not be recorded in the books of actual importer. It was noticed that bogus entries worth ₹ 26.30 lacs was provided to the petitioner by one M/s. Mahalaxmi Gems Pvt. Ltd, one of the Bhawarlal group of bogus companies. When the Assessing Officer had such material at his command, after processing which, he recorded his reasons as can be seen from paras 4 to 6 of the reasons, we do not find that he acted without proper application of mind. First part of the reasons recorded in paras 1 to 3 give background of various activities carried on by Bhawarlal group of persons as revealed during search and seizure operation carried out by the investigation wing of the department. Contents of paras 4 to 6 of the reasons refer specifically to the petitioner and are in the nature of the Assessing Officer's observation on the basis of materials supplied to him. This is, therefore, neither a case of issuance of notice without application of mind nor a case of recording of reasons through borrowed satisfaction of another authority or wing of the department. - Decided against assessee.
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