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2022 (7) TMI 253 - AT - Income TaxReopening of assessment u/s 147 - Addition u/s 68 - Whether Assessee had discharged the primary onus to establish the genuineness of the transaction? - HELD THAT:- A.O. has mentioned that assessee has taken accommodation entries in the form of unsecured loans from the entry providing companies being controlled by Shri SK Jain group of companies. Whereas the addition made is on account of an entry in the shape of share capital. All the above prove that there is a complete non-application of mind by the A.O. and the reopening has been made on wrong set of facts and the approval/sanction granted under section 151 is in a very mechanical manner and without application of mind. As in the instant case, the assessment has been reopened on the basis of wrong facts and the approval has been given by the PCIT in a mechanical manner without due application of mind, therefore, such reopening of the assessment, in our opinion, is not in accordance with law and, therefore, has to be quashed. We, therefore, quash the reassessment proceedings. Since we have quashed the reassessment proceedings on account of wrong set of facts and mechanical approval under section 151 by the PCIT, the grounds challenging the validity of the assessment on account of jurisdiction by the A.O. and other plank of arguments challenging the validity of reassessment proceedings and the addition on merit are not being adjudicated being academic in nature. The grounds raised by the assessee are accordingly allowed.
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