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2023 (3) TMI 1149 - AT - Income TaxReopening of assessment u/s 147 - addition on account of unsecured loan from 3 parties - source of information available with the AO was the letter of the DDIT, INV, New Delhi wherein it has been stated that the accommodation entries in the name of paper companies were debited - HELD THAT:- Accommodation entry was mentioned as purchase/ investment/ advance and the assessee was described as beneficiary from the above transactions. On going through the bank statement, it is noted that the assessee has made payment through RTGS to both the parties. These demonstrative facts clearly show that the AO has reopened the assessment based upon wrong facts, wrong appreciation of facts and without any application of any mind, in as much as, the assessee has not taken any credit entry but, in fact, have made debit entries and, therefore, by no stretch of imagination provisions of section 68 of the Act can be applied. A perusal of the reasons recorded for reopening of assessment clearly show that the Assessing Officer has reasons to belief that the assessee was beneficiary of accommodation entries. AO has accepted the objections of the assessee, and has not assessed or reassessed the income, which was the basis of the notice. Therefore, in light of the judgment of Jet Airways [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] it would not be open to the Assessing Officer to assess income under some other issue independently. No error or infirmity in the findings of the ld. CIT(A). Assessment order deserves to be quashed and has been rightly done so by the ld. CIT(A), which calls for no interference. Decided against revenue.
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