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2023 (3) TMI 395 - AT - Income TaxReopening of assessment u/s 147 - addition u/s 68 - Reason to believe - onus is on the assessee to prove the identity, creditworthiness and genuineness of the transaction which he had failed at the time of scrutiny proceedings - HELD THAT:- We find that it cannot be said that the CIT(A) while allowing the appeal of the assessee that there was no material before the assessing officer to brought on record any satisfaction or “reason to believe” that income chargeable to tax has been escaped assessment, therefore, notice issued u/s 148 was void-ab-initio. In the present appeal, AO has issued notice u/s 148 on the basis of information received from DIT that the assessee has received share application money from several entities which were only engaged in business of providing accommodation entry to the beneficiary concern. It cannot be said that there was no basis that the AO to frame “reason to believe” and in such situation it cannot be said that the ld. AO has issued notice u/s 148 upon the assessee as void-ab-initio. Since the ld. AO had made instant enquiry u/s 133(6) and u/s 131 of the Act from the directors of the companies, from where share premium was received by the assessee company and he discovered that assessee company had rooted its own fund/unaccounted money through the shareholders company - we are not convinced with the view taken by the CIT(A) by which he treating the notice issued u/s 148 AO was void-ab-initio and allow the appeal of the assessee without going through the merits of the case. Therefore, we remand back to the whole issue to the file of the ld. CIT(A) to decide the merits of the case. Ground nos. 1 is allowed and ground no. 2 taken by the revenue is allowed for statistical purposes.
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