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2022 (5) TMI 544 - AT - Income TaxReopening of assessment u/s 147 - addition u/s 68 - HELD THAT:- As information was received from the Assessing Officer in another case, wherein during the course of the search it was found that said person was engaged in providing accommodation entries and the assessee before us also received loan from one of such party. In our opinion, the information was received from reliable sources and there was relevant material on which a reasonable person could make a requisit belief that income escaped Assessment, and therefore the Assessing Officer is justified in reopening the assessment. CIT(A) has also rejected the contention of the assessee that there was no failure on the part of the assessee in making full and true disclosure, as false claim was made by the assessee regarding the loan. In absence of any rebuttal by the assessee before us, we concur with the finding of the CIT(A) on the issue in dispute and uphold the finding of the Ld. CIT(A). The grounds raised by the assessee challenging the legality of the reassessment are accordingly dismissed. Addition u/s 68 - We find that assessee failed to discharge its onus under section 68 of the Act and therefore the Ld. CIT(A) is justified in upholding the addition. We do not find any error in the order of the Ld. CIT(A) on the issue-indispute and accordingly we uphold the same. The grounds, pertaining to merit of the additions are also dismissed. - Decided against assessee. Penalty u/s 271D - Revenue has treated the credit of the loan as unexplained and levied the penalty treating that loan was received otherwise than by account payee cheque - CIT(A) has cancelled the penalty stating as we upheld the addition made u/s. 68 the penalty order passed u/s 271D is not sustainable - HELD THAT:- The finding of the Ld. CIT(A) is justified as the Revenue cannot have held the loan as unexplained and simultaneously treat that the loan was received otherwise than by account payee cheque and levy penalty. We do not find any error in the order of the Ld. CIT(A) on the issue in dispute and accordingly, we uphold the same. The grounds of the appeal of the Revenue accordingly, dismissed.
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