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2016 (9) TMI 293 - AT - Income TaxReopening of assessment - information supplied by Investigation Wing - Held that:- AO has merely acted in mechanical manner on receipt of the report from the Investigation Wing that “he has reason to believe that income of ₹ 54,00,000/- has escaped assessment for the assessment year 2002-03 due to failure on the part of the assessee to disclose fully or truly all material facts necessary for assessment. AO has not even satisfied himself to prima facie make out that income of ₹ 54,00,000/- has escaped assessment in the year under assessment by pursuing record. AO has been provided with copies of share application forms containing names, addresses, PAN, bank details and confirmation of the investors, he was required to conduct the independent investigation to satisfy himself that such and such income has escaped assessment before assuming jurisdiction u/s 147 of the Act. Even on merits when the assessee had provided copies of share application forms containing names, addresses, PAN, bank details and confirmation of the investors, the onus stood shifted to the AO to prove that these are the shell companies and not to fasten the liability of the assessee on the ground that assessee has failed to produce the aforesaid six investor companies, moreso assessee cannot be called upon to prove negative. Thus forming an opinion merely on the basis of information supplied by Investigation Wing of the revenue that such and such company has provided an accommodation entries to the assessee to the tune of ₹ 54,00,000/- does not amount to the satisfaction of the AO in any manner whatsoever to reopen the case u/s 147 of the Act; - Decided in favour of assessee
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