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2021 (10) TMI 346 - AT - Income TaxReopening of assessment u/s 147 - Validity of reasons to believe - accommodation entries receipt - assumption of existence of jurisdictional fact/incorrect fact - HELD THAT:- AO if had made some preliminary enquiry after receipt of information then this kind of goof up could have been avoided. Thus in this case the AO has erroneously assumed the existence of jurisdictional fact/incorrect fact, so the reasons recorded to form the believe fails to stand the scrutiny of law, and the same was on an erroneous assumption of facts since the AO’s reason to believe escapement of income was that the assessee is a beneficiary of accommodation entry provider Shri Gautam Jain & Ors. Whereas in the assessment framed there is no whisper about Shri Gautam Jain and the figure of ₹ 12,33,210/- has come down to ₹ 6,16,605/-. Therefore, reason to believe escapement of income was on erroneous facts and therefore the AO did not enjoy the jurisdiction to reopen the assessment and therefore the assessee succeeds on the legal issue raised.
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