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2017 (11) TMI 1133 - AT - Income TaxReopening of assessment - assessee had taken cheques from the accommodation entry provider - reasons to believe - borrowed information - no independent application of mind by AO - Held that:- Going through the reasons to believe recorded by the Assessing Officer, reproduced hereunder, we concur with the contention of the ld. AR that it is vague as the reasons to belief has been formed solely on the basis of information received from the Investigating Wing of the Department. No specific source of information has not been disclosed, on the basis of which it has been assumed that assessee had taken cheques from the accommodation entry provider, after paying them unaccounted cash. Obviously, no occasion to the assessee has been given to cross examine the alleged entry provider, on the basis of whose statements or intimation, the Investigation Wing of the Department had come to the finding of alleged accommodation entry and sent it to the Assessing Officer, who has based on his reasons to initiate reopening proceedings without examining the veracity of the said information. The alleged information of the Investigation Wing can alone at the best be a reason to suspect, however, in the absence of any other material, same cannot be a tangible material for the formation of belief. Undisputedly, in the present case, there was no material other than the purported information before the Assessing Officer to form his reasons to believe that there was an escapement of assessable income. - Decided in favour of assessee.
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