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2021 (8) TMI 632 - AT - Income TaxReopening of assessment u/s 147 - reasons were recorded on receipt of information from Investigation Wing - case of the assessee was reopened second time - Share capital received from M/s. Moderate Credit Corporation Ltd. - HELD THAT:- Perusing of the reasons recorded and assessment order framed in this case further shows that, “the entire reopening and assessment proceedings have been based upon the information received by the AO from the Investigation Wing of Income-tax, where Aseem Gupta had admitted to provide accommodation entries to several beneficiaries with the help of several bank accounts opened in the name of several proprietary concerns and companies in which either he himself or his employees were Director or proprietor.” Apart from this information, which has been taken as gospel truth by the AO, no independent enquiry has been made to collate and corroborate this statement and information provided by Aseem Gupta to Investigation Wing. The issue in question that assessee company has received accommodation entry from Moderate Corporate Corp. belonging to one Aseem Gupta, CA was subject matter of the earlier assessment framed u/s 147 read with section 143 (3) of the Act. Last sentence of the reasons recorded apparently goes to prove that AO has reopened assessment u/s 147/148 of the Act to verify the genuineness, identification and creditworthiness of the aforesaid transaction. It is settled principle of law that jurisdiction u/s 147 can only be assumed to enquire into the escapement of income or on the basis of some tangible material - See M/S SBS REALTORS (P) LTD. VERSUS INCOME TAX OFFICER, WARD-22 (4) , NEW DELHI [2019 (4) TMI 357 - ITAT DELHI] Assessment framed in this case is not sustainable since the very jurisdiction assumed by the AO u/s 147 of the Act is bad in law and assessment framed on the basis of “change of opinion” u/s 147/143 (3) is void ab initio and is not sustainable in the eyes of law, hence quashed. Since assessment framed is not sustainable in the eyes of law on legal grounds, grounds raised on merits are not required to be disposed off.- Decided in favour of assessee.
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