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2022 (4) TMI 506 - HC - Income TaxReopening of assessment u/s 147 - Reasons to believe - availability of tangible material - HELD THAT:- As in the case on hand, the search assessment was finalized u/s 143(3) read with Section 153A - Thereafter, survey action under section 133A of the Act was conducted by the Investigating Wing, Mumbai in the case of Shri Bijal Ashok Shah, proprietor of M/s. Swastik Corporation. During the course of the survey action, one statement of ijal Ashok Shah was recorded on oath wherein he admitted that he is engaged in the business of providing accommodation entries to the beneficiaries in lieu of commission. Bijal Ashok Shah also disclosed the modus operandi employed by him to provide the entries to the beneficiaries . Bijal Ashok Shah, in his statement, has also named the writ applicant herein as one of the recipients of the accommodation entries. All these facts were not before the Assessing Officer at the time of finalization of the search assessment. It is a settled position of law that the adequacy of the reasons provided by the Assessing Officer fall outside the review powers and remains within the domain of the Assessing Officer at this stage of the proceedings where only a preliminary finding under section 147/148 has been made. Having regard to the materials on record it cannot be said that there is a there is a total non-application of mind on the part of the AO while recording the reasons for reopening of the assessment. It also cannot be said that his conclusion was merely based on the observations and information received from the Investigation Wing. AO could be said to have applied his mind to the same. AO could not be said to have merely concluded without verifying the facts that it is the case of reopening of the assessment. We have examined the belief of the AO to a limited extent to look into whether there was sufficient material available on record for the Assessing Officer to form a reasonable belief and whether there was a live link existing of the material and the income chargeable to tax that escaped assessment. The case on hand is not one where it could be argued that the Assessing Officer, on absolutely vague or unspecific information, initiated the proceedings of reassessment without taking the pains to form his own belief in respect of such materials. Writ application dismissed.
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