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2021 (10) TMI 613 - Income Tax
Reopening of assessment u/s 147 - eligibility of reasons to believe - whether Addition based on borrowed reasons? - Bogus purchases - HELD THAT:- Assessing Officer has simplictor taken the reasons recorded in another cases. In fact, from first page of the reasons it is mentioned that the information of accommodation entry includes A.Y. 2006-07. It can be further seen that there is a reference to some verification and disposing off the objections filed by most of the assessees against reopening of their cases u/s. 147.
Taking the reasons as it is without verifying the assessee case, the Assessing Officer formed a belief that the assessee has also made bogus purchases and the same has to be treated as income of the assessee for assessment year 2007-08. The Assessing Officer proceeded to make opinion on the basis of borrowed reasons and there is no independent application of mind and in such circumstances and facts of the case, reopening of the assessment u/s. 147 of the Act is bad in law and is accordingly directed to be quashed - See RAJENDER PARSAD PROP. M/S. PRIYA ENTERPRISES VERSUS THE I.T.O, WARD 63 (3) , NEW DELHI [2018 (10) TMI 143 - ITAT DELHI] - Decided in favour of assessee.