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2017 (8) TMI 21 - AT - Income TaxValidity of reopening of assessment - receipt of accommodation entries by assessee - Held that:- In the present case assessment has been reopened on the basis of search and seizure action at the premises of SK Gupta Group Companies. At this juncture, we agree with submissions made by Ld. Counsel that on receipt of information received on the basis of search and seizure operation, assessing officer should have followed procedure under section 153C, instead of reopening the assessment u/s 147. Further it is observed that the reopening has been done on the basis of reasons recorded on incorrect facts. That being so the reasons are in fact no reasons at all. Assessing officer could have confirmed purchase of software provided by M/s BT Technet Ltd., from Ministry of Home Affairs who was buyer. Ld. Counsel placed his reliance upon a chart reproduced at page 27 of order of Ld. CIT(A) wherein all the purchases from M/s BT Technet Ltd., has been listed. It is submitted that except for alleged PGSM Software Module, rest of purchases has not been disputed by the authorities below. Further at para 2.1 of assessment order assessing officer himself mentions that purported transaction for purchase of PGSM Software module from M/s BT Technet Ltd., was provided vide bill dated 25.05.2004. In our considered opinion, this cannot be correct as actual invoice is dated 28.12.2003 a copy of which is placed in paper book. If we go by bill dated 25.05.2004 as observed by Ld.AO, alleged transaction would fall in the previous year relevant to assessment year 2005-06 and not in the year under consideration. Also assessing officer has proceeded with preconceived notion by blindly accepting statement of Sh. SK Gupta and entire finding is based on mere surmises and conjunctures without any application of mind. At this juncture it is pertinent to observe that reasons recorded are based on inferences of Ld. AO without there being any materials on record to support such inferences. In view of above discussions addition made by Ld.AO stands deleted. - Decided in favour of assessee.
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