TMI Blog2011 (6) TMI 851X X X X Extracts X X X X X X X X Extracts X X X X ..... certain companies were involved in giving accommodation entries and assessee is one of the beneficiary of such entry. These informations were supplied to the AO who has the jurisdiction over the assessee. On perusal of the information, Ld. AO found that four companies have given money to the assessee through account payee cheque. On the basis of information, he harbored a belief that these companies were in the business of providing accommodation entries and they have provided accommodation entry to the assessee also. In lieu of the cheques issued in favour of assessee, they must have received cash. Thus according to the AO, income chargeable to tax has escaped assessment and he issued a notice u/s 148 of the Income Tax Act. In response to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... four companies have provided the accommodation entries or not. In fact, only two concerns have provided the alleged accommodation entries. Thus, it indicates that AO has not properly analyzed the information. Before harboring a belief that income has escaped tax, Ld. AO ought to have made analysis of the submissions of assessee as well as the facts brought on record. Ld. CIT(A) has considered the submission of assessee and made a reference to the ratio of law referred by the assessee, in this connection. Ld. CIT (A) has held that there was no material with the AO, which could lead to the conclusion that income has escaped fare. 5. Ld. DR has submitted that AO has an information supplied by the DIT Wing, which discloses certain companies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ho were found to be indulged in providing accommodation entries by the investigation wing of the Income Tax Department. Two concerns have not advanced any share application money to the assessee. On the strength of this fact, it was pleaded that AO has not applied his mind before issue of notice u/s 148. The AO was not required to reach at any firm conclusion before issuing a notice u/s 148. He has to form a prime facie opinion demonstrating the escapement of income from tax. The quality of reasoning considered by the AO may not be a very important factor. From the reason, prime facie it is discernable that income chargeable to tax has escaped assessment and AO is satisfied with the genuineness of the information vis a vis escapement of inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 303 ITR 95. At the time of hearing, Ld. Counsel for the assessee pointed out that issue in dispute the is squarely covered in favour of the assessee by the decision of Hon ble Delhi High Court in the case of Oasis reported in 333 ITR 109 . On due consideration the details submitted by the assessee, order of the Ld. CIT(A), in the light of the decision of Hon ble Delhi High Court, we are of the view that assessee has proved the identity of the share application. It has proved that share application money was received through account payee cheque. All the share applications were income tax assessee and it has filed their permanent account number. Therefore, assessee has discharged its onus and no addition can be made u/s 68 of the Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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