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2018 (12) TMI 808 - AT - Income TaxReopening of assessment - addition u/s 68 - assessee was beneficiary of accommodation entries - non independent application of mind by AO - borrowed satisfaction - Held that:- In the instant case none of the companies from whom the assessee company has received share capital/share premium are mentioned in the statement of Shri Rajesh Kumar Aggarwal, therefore, it is a clear case of no independent application of mind by the Assessing Officer to the tangible material and the reasons failed to demonstrate live link between tangible material and formation of reasons to believe that income has escaped assessment. The satisfaction recorded by the Assessing Officer is at best a reproduction of the conclusion of the investigation wing report and is a borrowed satisfaction. The Hon’ble Delhi High Court in the case of RMG Polyvinyl (I) Ltd. [2017 (7) TMI 371 - DELHI HIGH COURT] has held that where information was received from Investigation Wind that assessee was beneficiary of accommodation entries but not further enquiry was undertaken by the Assessing Officer, said information could not be said to be tangible material per se and, thus, reassessment on said basis was not justified. - Decided in favour of assessee.
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