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2021 (5) TMI 342 - AT - Income TaxReopening of assessment u/s 147 - borrowed satisfaction v/s independent application of mind - addition u/s 68 - assessee has failed to discharge the onus of establishing the genuineness of the transaction of investment made by M/s. Real Time Consultants - HELD THAT:- Though the AO had issued notice u/s. 148 of the Act after obtaining sanction from the concerned authority, yet it is apparent that the AO has issued notice u/s 148 of the Act on the basis of the information received from the department. AO has not pointed out as to how the investment in question is the unexplained income of the assessee. Action taken under section 147 on the basis of borrowed satisfaction is bad in law. Since the material for forming belief in the present case are similar to the material available in the aforesaid cases, and the coordinate Benches have decided the identical issue in favour of the assessee, we find merit in the contention of the Ld. Counsel that the AO has initiated proceedings u/s. 147 read with section 148 of the Act on the basis of information received from the department without application of his mind. In our considered view, the assessee's case is covered by the decisions rendered by the coordinate Bench in the case of M/s. century Fiscal Services Ltd. Vs. ITO [2020 (11) TMI 766 - ITAT CHANDIGARH] and M/s. Indo Global Techno Trade Limited vs. ITO [2020 (6) TMI 375 - ITAT CHANDIGARH] Hence we hold that the AO has assumed the jurisdiction under section 147 of the Act in a mechanical manner, therefore the order passed by the AO is liable to be quashed. Allow the appeal of the assessee.
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