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2021 (7) TMI 996 - HC - Income TaxReopening of assessment u/s 147 - Addition u/s 68 - whether the initiation of 147 proceedings are based on tangible materials or change of opinion? - HELD THAT:- Since the assessee has completely failed to discharge his onus, the trade advances was treated as ingenuine and assessed under Section 68 - The said findings would reveal that though the petitioner has filed the list of persons, failed to furnish the complete details of the trade advances and to proof it is arising out of the purchases made in normal course of business. In view of the said non-disclosure, the Assessing Officer has formed an opinion for reopening of an assessment. The findings of the AO reveals that during the original assessment proceedings, the assessee was asked to furnish the details and confirmations, in respect of the unsecured loans. The assessee, vide written submissions made on 12.10.2007, furnished a list containing the name of persons and amount outstanding against them in respect of the unsecured loans. However, the assessee has not furnished the loan confirmation, address and PAN of the persons from whom he claims to have received such loans - Assessing Officer formed an opinion that the onus is on the assessee to substantiate the loans by furnishing the above details to verify the genuinity and credit worthiness of the loan creditors. Since the assessee has completely failed to discharge his onus, the unsecured loan was treated as ingenuine and assessed under Section 68 of the Act. This Court is of the considered opinion that as pointed out by the learned counsel for the petitioner, the assessee has furnished the list of persons and list of unsecured loans. However, the details of the names and other particulars, in order to establish the genuinity of such transactions, were not furnished. Thus, the Assessing Officer has reason to believe that income chargeable to tax escaped assessment due to non-furnishing of the complete informations and details, truly and fully, during the original assessment. This Court do not find any infirmity or perversity in respect of the findings arrived by the respondent, while disposing of the objections. Reasons as well as the inference drawn from and out of the particulars provided by the petitioner are candid and convincing. Thus, this Court is not inclined to interfere with the proceedings initiated for reopening of the assessment. The petitioner has to cooperate with the disposal of the reassessment proceedings. The respondent is bound to proceed with the reassessment and complete the exercise.
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