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2018 (1) TMI 661 - ITAT MUMBAIReopening of assessment - reason to believe - receipt of accommodation entries - Held that:- In this case cogent and credible information was received that the assessee has obtained accommodation entries from entities managed by Shri Mukesh Choksi and Associates. Shri Mukesh Choksi has admitted that the group was engaged in fraudulent billing activities and giving accommodation entries in order to enable the clients to declare speculation profit/loss, short term capital gain/long term capital gain, profit/loss on account of accommodated trading, introduction of share application money, or introduction of money in the form of gifts, etc. Information was received that the assessee had obtained accommodation entries and claimed the same as long term capital gain as exempt. In this scenario, the assessment was reopened. It is the settled law that at the time of reopening there should be reasonable cause and the escapement of income need to be proved to hilt at the time of reopening. This proposition is duly supported in the case of CIT vs. Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA] . The overwhelming evidence are available with the revenue that the share transactions reflected by the assessee were bogus transaction routed through bogus entities managed by Shri Mukesh Choksi and Associates. The assessee has given no cogent reason to counter the aforesaid findings. The Assessing Officer has clearly mentioned in the show cause that after examining the transactions and after thorough verification of details submitted by the assessee, he was not convinced. In these circumstances, in my considered opinion, it is clear from the factual date noted hereinabove that the assessee has entered into dubious transaction meant to reflect its undisclosed income in the garb of long term capital gain. - Decided against assessee
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