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2024 (1) TMI 608 - AT - Income TaxReopening of assessment u/s 147 - ‘reasons to suspect’ or ‘Reasons to believe’ - Addition u/s 68 - Share application money and Commission Charges unexplained - AO has relied the information received from the investigation Wing, where cases of the “beneficiaries” who had received accommodation entries from Pradeep Kumar Jindal (entry operator), were to be reopened - HELD THAT:- At the stage of recording reasons assessing officer had not shown any indulgence of his own. It appears that the assessing officer had blindfolded himself to rely the investigation Wing report and made the same foundation of recording the reasons for the reopening. The manner in which the reasons have been recorded make it appear that the assessing officer without actually applying his mind to the information made available by the investigation Wing proceeded to open the cases of all beneficiaries of alleged entries from Pradeep Kumar Jindal group of companies by recording reasons in same template/format and included assessee also as a beneficiary while assessee was a company of Pradeep Kumar Jindal and assessee is providing accommodation entries to the beneficiaries. In case in hand the issue was of accommodation entries from numerous companies of one operator and for that assessing officer, while recording reasons the ld. AO should have justified that he has traveled the distance between ‘reasons to suspect’ and ‘Reasons to believe’. Which he failed and CIT(A) has erroneously sustained the reasons to believe, by very general discussion holding that reason are based on specific information. The information as narrated in the reasons may have been specific qua Pradeep Kumar Jindal, but not as against the assessee. Decided against revenue.
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