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2020 (9) TMI 466 - AT - Income TaxAssessment u/s 147 - Validity of reopening of assessment - Assessment u/s 153A - whether assessee has failed to substantiate that relevant accommodation entry transactions were already considered in the block assessment proceedings? - HELD THAT:- In the case of the assessee the regular return of income filed was only processed and no “regular assessment” under section 143(3) of the Act was completed. The block assessment under section 158BC has been completed in respect of the undisclosed income unearthed during the course of the search carried out at the premises of the assessee. Under the “block assessment” only incriminating material found during the course of the search can be basis for the block assessment and it is distinct from the “regular assessment”. The Assessing Officer has put the facts that no scrutiny assessment u/s 143(3) of the Act i.e. regular assessment was carried in case of the relevant assessment year. In our considered opinion, there is no incorrectness of the fact on the part of the Assessing Officer - No incorrectness of the facts in the reasons recorded. Borrowed satisfaction of AO - reference of the entries obtained from M/s RK Agrawal and Co. The Assessing Officer has reproduced all the four entries with details of the amount, date of transaction, bank account from which entry was given, instrument number etc. the Assessing Officer has also mentioned that no scrutiny assessment under section 143(3) of the Act was completed in the case of the assessee and therefore no information relating to the transaction was available on record. Assessing Officer has formed his belief on the analysis of credible information received from the Investigation Wing and satisfaction recorded on said information, cannot be said as borrowed satisfaction. We may also like to point out here that the Assessing Officer can issue notice under section 133(6) of the Act during pendency of the assessment proceeding and not authorised to carry out enquiry invoking section 133(6) of the Act prior to recording of reasons and reopening of the assessment. We reject the contention of assessee that Assessing Officer has not applied mind while recording the reasons and he recorded the reasons on the basis of the borrowed satisfaction. Whether no notice under section 148 of the Act can be issue after completion of the block assessment proceedings? - In the instant case, the Assessing Officer has reopened regular assessment and not block assessment. The regular assessment and block assessment are both separate proceedings and even can run parallel. Assessing Officer has noted that the assessee has failed to substantiate that relevant accommodation entry transactions were already considered in the block assessment proceedings. We also reject the contention of the Learned Counsel of the assessee that no notice under 148 of the Act can be issued in the case of the assessee in view of the block assessment completed prior to issue of notice u/s 148 of the Act. Addition u/s 68 - accommodation entries in the block assessment order - HELD THAT:- The onus is on the assessee to discharge the responsibility of substantiating that in case of RK Agrwal and company only commission income was earned. The assessee has neither produced those parties for statement alongwith documentary evidences to support that only commission income was earned. In view of the failure on the part of the assessee to discharge his onus, the addition made by the Assessing Officer is sustained and we reject the contention of Learned Counsel of the assessee seeking telescoping of the addition with the income already assessed in the block assessment order. The ground of the appeal of the assessee is accordingly dismissed.
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