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2018 (3) TMI 583 - AT - Income TaxReopening of assessment u/s 147/148 - accommodation entries - non independent application of mind by AO - Held that:- AO while recording reasons has failed to apply his mind and has merely referred to the report of the Investigation Wing. The least that was required by the Assessing Officer was to establish a link between the information made available by the Investigation Wing and the formation of his belief on escapement of income, which is clearly absent in the present case In the reasons recorded there is no details of the transaction and a bald reference to “entries amounting to ₹ 46,12,826/-” has been made. Even when the assessee pointed out to AO in its reply dated 7/11/2012, about the incorrectness of the purchases stated at ₹ 46,12,826/- as against actual purchase of ₹ 1,44,405/-, no credible negation has been brought out by the Assessing Officer. At the time of recording of reasons even the minimum required application of mind was absent, which obligated the Assessing Officer to establish a crucial link between the information made available to him and his belief about escapement of income. Therefore, the initiation of reassessment proceedings u/s 147/148 of the Act in the present case is without application of appropriate mind and, thus, untenable in law. - Decided in favour of assessee.
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