2022 (11) TMI 939 - AT - Income Tax
Reopening of assessment u/s 147 - Reason to believe - Addition u/s.68 - unsecured loans obtained - HELD THAT:- From the reasons recorded by the AO it is evident that reference has been made to the report of ADIT (Investigation), which is based on the investigation carried out by the CBI. In the aforesaid reasons, on one hand, the assessee is alleged to be one of the group companies formed by Shri Arun and Harsh Dalmia and is engaged in providing accommodation entries to various concerns. While on the other hand, the assessee was alleged to be the beneficiary, which has received bogus accommodation entries.
In the entire reasons, as recorded by the AO, there is no mention of the entity from which the assessee is alleged to have received the bogus accommodation entry. There is also no allegation that the 20 dummy concerns which are alleged to be operated by directors of the assessee have provided the aforesaid bogus accommodation entry to the assessee. Though the investigation carried out by the CBI is alleged to be the basis for initiating the reassessment proceedings u/s 147 however, there is no mention as to which information can prima facie lead to the conclusion that income chargeable to tax has escaped assessment in the case of the assessee. There is also no mention of any alleged transaction resulting in bogus accommodation entry in favour of the assessee.
As in the present case, the nexus between the alleged material, i.e. the investigation report of the CBI, and the belief of escapement of income from assessment under section 147 of the Act is missing and thus renders the reasons to be reasons to suspect for making further investigation.
Thus we are of the considered view that in the present case reasons recorded by the AO are not only vague but also lack the vital link between the alleged material and the belief that income of the assessee has escaped assessment. - Decided in favour of assessee.