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2017 (9) TMI 384 - HC - Income TaxValidity of reopening of assessment - non-application of mind to the objections raised by the Petitioner - non-genuine accommodation entries taken by assessee - Held that:- The Court finds that the order dated 26th July 2017 rejecting the Petitioner’s objections has not in fact dealt with the objections at all. It merely reiterates that the DDIT (Investigation) had intimated that the Petitioner had taken non-genuine accommodation entries from one of the dummy companies including M/s. JMD International. It then sets out Section 147 of the Act. The order proceeds to assert that the AO has in the reasons recorded, formed his opinion in writing and that “this belief has been made after due diligence and considering the fresh material, evidences and facts available on the record.” There is no basis for this bald assertion considering that the only material available with the AO was the letter sent by the DDIT (Inv). The order then sets out the summary of certain decisions and then simply concludes that “keeping in view of above, the objections filed are not acceptable and stand disposed of.” Thus the impugned order stands vitiated in law for non-application of mind to the objections raised by the Petitioner. It does not discuss any of the objections. It does not deal with the documents enclosed along with the objections. The impugned order fails to address the principal objection that the so-called entries found in the bank account of M/s. JMD International were in fact entries signifying the payment made to the Assessee for the sales made by it to M/s. JMD International. The genuineness of these transactions should easily have been verified by the AO even at this stage. AO is directed to again consider the objections of the Assessee
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