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2017 (11) TMI 856 - AT - Income TaxValidity of reopening of assessment - reopening relying on the information received from Investigation Wing that the assessee has taken accommodation entry from Sh. Harish Pawar - no independent application of mind by AO - borrowed satisfaction of AO - allegation in reasons cannot be treated equivalent to material in eyes of law - Held that:- No substance in the contention of the assessee that the assessment has been made without disposing of the objections of assessee. In this regard, we find that the CIT(A) has rightly dealt with this issue. It is not discernible either from the assessment order or from the remand report that the assessee did file any such objections before the AO, which he claims to have been filed. The AO categorically denied any objection filed by the assessee on record. CIT(A) also examined the case records of the assessee, where no such objections to the reasons recorded were found. Moreover, the assessee itself has failed to file even the copy of any such objection either before the ld. CIT(A) or before us. Therefore, ld. CIT(A) was justified to reject this contention of the assessee. As regards the contention of the assessee regarding invalid reasons recorded by the AO for forming a belief of escapement, we find considerable substance in this submission of the assessee. It is notable that the ld. Assessing Officer has formed his belief of escapement of income simply by relying on the information received from Investigation Wing that the assessee has taken accommodation entry from Sh. Harish Pawar, prop. M/s. Amit Impex (India) through its bank account. A perusal of the reasons recorded shows that the Assessing Officer appears to have simply concluded on the said information to form the belief of escapement of income, without applying his own mind and bringing on record any tangible material to record his satisfaction. It is worthwhile to note that though the AO has observed in the assessment order that the alleged donor, Shri Harish Pawar in his statement recorded by the Investigation Wing had deposed that the bank account of its proprietary concern, M/s. Amit Impex was being used for providing only accommodation entries, but no such fact regarding deposition of alleged donor is found mentioned in the reasons recorded by the AO so as to form a belief on some tangible material. The ld. Assessing Officer has felt satisfied only by concluding the information and therefore, the belief formed by AO on such conclusion is not tenable to justify the initiation of proceedings u/s. 147/148. See Pr. CIT vs. Meenakshi Overseas Pvt. Ltd. [2017 (5) TMI 1428 - DELHI HIGH COURT] - Decided in favour of assessee.
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