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2022 (2) TMI 919 - AT - Income TaxReopening of assessment u/s 147 - Eligibility of Reasons recorded for reopening of assessment - borrowed satisfaction - Non independent application of mind by AO - Unexplained deposits - HELD THAT:- The reasons recorded clearly state that the same was recorded merely on the basis of the information received by the AO from DIT(Investigation), Surat and Ahmedabad relating to the accommodation entries. AO has not recorded any other information that what extent of income which has escaped from the assessment for the Asst.Year 2009-10 in the case of the assessee by these accommodation entries. AO was not clear whether these entries in the receipt/income of the assessee. He simply repeated the information that he has received from the DIT(Investigation), Surat and Ahmedabad. As relying on MARIYAM ISMAIL RAJWANI case [2016 (8) TMI 1472 - ITAT AHMEDABAD] reopening of the assessment is bad in law, when the reassessment is based on “borrowed satisfaction”. In the present case also deposits made by Pioneer Mercantile Ltd. and Jupiter Business Ltd were towards share application money to the assessee-company which has been explained by the assessee before the ld.CIT(A) vide its letter dated 10.10.2017, the same was not considered by the ld.CIT(A) and however confirmed the additions - on the validity of re- assessment notice issued on the ground of “borrowed reasons”, the CIT(A) has not followed jurisdictional Tribunal’s decision and upheld the reopening of the assessment, which is not in accordance with law and following judicial discipline. Appeal of the assessee is allowed
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