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2017 (12) TMI 132 - HC - Income TaxReopening of assessment - accommodation entry - Held that:- The information received by the petitioner's Assessing Officer is specific, both as to the amount as also to the character of it being an accommodation entry. Not only that the information states that the entries are accommodation entries but that information further states that the person who is shown as a creditor in books of account of the assessee has himself denied the genuineness of that entry. Prima facie, therefore, there is both material as also a reason to believe that the said entries are accommodation entries. In that view of the matter, we find that the jurisdiction appears to have been validly exercised by the Assessing Officer. However, the observations made by us are only confined to the issue whether the jurisdiction to initiate reassessment proceeding had validly arisen against the petitioner for the Assessment Year 2010-11. No part of the observation made would be relevant to the merits of the dispute i.e. whether an addition on the above count is warranted in the entirety of the facts and circumstances of the case. That issue would remain to be examined in the consequential reassessment proceedings to be now conducted by the Assessing Officer in which the assessee would be within its right to rebut the allegation made against him and to lead such evidence in its defence as it may desire to establish that the aforesaid entries were in fact genuine entries and not accommodation entries.
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