The Tax Publishers2019 TaxPub(DT) 8322 (Del-Trib)

INCOME TAX ACT, 1961

Section 147

As apparent from reasons recorded for reopening, AO had categorically mentioned that he has scrutinized audited accounts for the assessment year ending March 2006 which showed that assessee had disclosed these transactions with certain entities not having any genuine business activity and therefore, AO had reason to believe that pertaining to transactions with those entities had escaped assessment due to failure on the part of assessee to disclose truly and fully all material facts. Therefore, contention of assessee that section 148 notice had been issued without application of mind did not hold water and accordingly, reassessment order was sustained.

Reassessment - Reason to believe - Due application of mind by AO as regards information emanated from investigation wing -

AO received information from investigation wing as to assessee having received bogus accommodation entries. Accordingly, AO reopened assessment and made addition. Assessee challenged this on the ground that AO had reopened assessment without application of mind on the material provided by investigation wing. Held: As apparent from reasons recorded for reopening, AO had categorically mentioned that he has scrutinized audited accounts for the assessment year ending March 2006 which showed that assessee had disclosed these transactions with certain entities not having any genuine business activity and therefore, AO had reason to believe that pertaining to transactions with those entities had escaped assessment due to failure on the part of assessee to disclose truly and fully all material facts. Therefore, contention of assessee that section 148 notice had been issued without application of mind did not hold water and accordingly, reassessment order was sustained.

REFERRED :

FAVOUR : Against the assessee.

A.Y. : 2006-07

INCOME TAX ACT, 1961

Section 69C

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