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2022 (7) TMI 631 - AT - Income TaxReopening of assessment u/s 147 - Addition u/s 68 - assessee stated that the assessee had no connection whatsoever with Kartika Investments and Victory Tie-up Pvt.Ltd., neither payment was received nor was any payment made to them - whether reason recorded for re-opening by the AO was found to be based on incorrect facts? - HELD THAT:- Looking to the findings of the AO, who has not rebutted the explanation by placing any credible material in support of his allegation that the assessee company has obtained bogus profit through accommodation entry. In the absence of specific finding supported by evidence mere reasoning on the basis of suspicion would not support the allegation. AO has not brought any evidence to prove the correctness of allegation that the assessee procured profit in the present case. In light of the binding precedents on this issue in the case of Sarthak Securities Co.Pvt.Ltd. [2010 (10) TMI 92 - DELHI HIGH COURT] re-opening of the assessment cannot be sustained in the present case. Since the re-opening of assessment is based upon purely on guess work hence, cannot be sustained - therefore, hold that the reasons recorded by the AO do not conform to law as there is a gross non-application of mind. Hence, the impugned order is hereby quashed. - Decided in favour of assessee.
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