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2018 (1) TMI 328 - AT - Income TaxReopening of assessment - case reopened on the basis of independent information in the form of enquiry report of Investigation Wing - bogus payment - Held that:- From the reasons recorded, we do not find anywhere that these reasons were recorded on the basis of enquiry report of Investigation Wing suggesting that the payment to M/s Maruti Papers Ltd. was bogus. Though in the assessment order, AO has mentioned the enquiry report of Investigation Wing, Meerut (UP) for making additions, but it has not been made basis for reopening of the assessment and the assessment has been reopened merely on account of the difference of the amount recorded in the books of accounts of the assessee as well as in books of accounts of the M/s Maruti Papers Ltd. only. The assessee in its books of accounts recorded arranger fee of ₹ 68,99,954/- whereas M/s. Maruti Papers Ltd. credited an amount of ₹ 68,47,500/-. According to AO this amount of ₹ 52,454 (Rs.68,99,954 - ₹ 68,47,500) has been debited in excess by the assessee. The assessee explained before us that this difference was due to change in accounting of service tax. According to him, the assessee followed inclusive method in respect of the service tax, whereas M/s. Maruti Paper Ltd followed exclusive method of service tax and therefore, said party has not shown amount of service tax in the profit & loss account. CIT(DR) could not controvert this fact that said information was already available with the Assessing Officer. In our opinion, when the information was already available before the Assessing Officer in respect of arranger fee paid to M/s Maruti Papers Ltd., reopening the assessment on the basis of the same information certainly amount to change of opinion. We may like to emphasize here that in the reasons recorded there is no mention of any additional information received in respect of M/s Maruti Paper Ltd. - Decided against revenue
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