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2023 (12) TMI 330 - AT - Income TaxValidity of Reopening of assessment u/s 147 - reasons to believe - borrowed belief - allegation of non Independent application of mind by AO - assessee had obtained accommodation entry - HELD THAT:- As on the date of recording of reasons by the Assessing Officer of the income of the assessee having escaped assessment, the only information with the Assessing Officer was that obtained from the DCIT, Central Circle-1, Rajkot, that the assessee had obtained accommodation entry from an alleged angadiya - That except for this, there was no other information with the AO and based on this information, he formed a belief that this amount represented unaccounted sales of the assessee and income to this extent had been escaped assessment. AO had made no attempt to verify whether these amounts had actually been received by the assessee and in what manner. Thus we completely agree with assessee that the Assessing Officer’s belief of escapement of income was not his own belief but a borrowed belief. Jurisdiction assumed in the present case by the Assessing Officer to frame assessment under Section 147 of the Act is without valid jurisdiction. Decided in favour of assessee.
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