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2017 (8) TMI 176 - AT - Income TaxUnexplained cash credit u/s. 68 - reopening of assessment - Held that:- The reason to believe formed by AO on the basis of alleged accommodation entries of ₹ 24,03,100/-, as contained in the information, stands collapsed, having been formed without any material on record and application of mind and accordingly, the addition so made on the basis of such unsustainable belief has rightly been deleted by the ld. CIT(A). The Coordinate Bench of Tribunal in the case of Mahadev Trading Co. (2011 (8) TMI 867 - ITAT AHMEDABAD) has held that where the Assessing Officer proceeded for reopening of assessment on non-existent and factually incorrect reasons and he did not apply independent mind on information received from DDIT(Inv.) prior to recording of reasons, the reopening of assessment in such a case was clearly invalid. We are, therefore, of the considered opinion that once it is found that the income, for which the AO had initially formed a reason to believe that it had escaped assessment, has not escaped assessment, it is not open to the AO to assess some other income. Appeal of the Revenue is dismissed
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