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2024 (9) TMI 1371 - AT - Income TaxValidity of Reopening of Assessment U/Sec 147 - Assessment on the basis of information received from the Investigation department of the Income Tax based on the Statement recorded of accommodation entry provider - main contention of the assessee is that the second reopening was done merely based on the information received for DDIT(Inv) and that the AO has not done any independent enquiry more so when the assessment is reopened beyond four years. HELD THAT - From the perusal of the assessment order we notice that the AO has acknowledged the fact that the assessee has submitted the bills delivery challan stock register etc. pertaining to the alleged bogus transaction - AO also acknowledges the fact that the assessee has submitted the ledger copy of M/s. Giriraj Enterprises Bank statements party confirmation etc. - We also notice that the AO is not disputing the fact that the goods bought through alleged bogus transactions have been sold as reflected in audited financial statements. We further notice that the AO has not recorded any adverse findings with regard to the documents submitted by the assessee with regard to the alleged bogus transactions. We further notice that the AO has recorded in the assessment order that the input credit on the alleged bogus purchases has not been denied and that the supplier has not been named as the hawala party. AO is making the addition for the reason that the party has admitted having entered into bogus transaction and that the assessee has not produced the parties. During the course of hearing the ld AR drew our attention to the statement of oath recorded from Mr. Harish Chandak to submit that he has not mentioned having entered into any bogus transactions with the assessee - We notice that during cross examination by the assessee s partne has categorically denied having given hawala bills to the assessee . From the perusal of the entire facts in assessee s case as explained herein above it is clear that the AO has completed the reassessment without proper appreciation of the facts and evidences submitted by the assessee in support of the alleged bogus purchases and merely based on the information from DDIT(Inv). Therefore in our considered view the entire reopening is carried out only on the basis of report of investigation wing without any independent enquiry and without any tangible material in the hands of the AO to show that the assessee was involved in taking accommodation entry towards bogus purchases. Accordingly the addition made by the AO is not sustainable and liable to be deleted. Decided in favour of assessee.
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