Surana Enterprises v. ITO - Taxpublishers.in

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The Tax Publishers2020 TaxPub(DT) 2265 (Del-Trib)

INCOME TAX ACT, 1961

Section 147

Investigation Wing on the basis of search, on the basis of posts such inquiries, and on the basis of statement of concerned accommodation entry provider, conclusively provided evidence to AO that assessee had obtained an accommodation entry of purchase of goods and this constituted tangible material available with AO so as to reopen assessment especially when case of assessee was never scrutinized in response to return filed by assessee.

Reassessment - Reason to believe - Information emanated from investigation wing -

AO received information from investigation wing as to assessee purchased only the bill and goods along with bill had not been received. Accordingly, AO reopneed assessment. Assessee challenged validity thereof on the ground that reopening was merely based on information emanated from investigation wing without any application of mind by AO. Held: Investigation Wing on the basis of search, on the basis of posts such inquiries, and on the basis of statement of concerned accommodation entry provider, conclusively provided evidence to AO that assessee had obtained an accommodation entry of purchase of goods. The case of assessee was never scrutinized in response to return filed by assessee. There was a tangible material available with AO and live link between such material as well as income of assessee as party issuing the bill had confirmed that it had provided accommodation entry. Therefore, naturally, reopening of assessment was in accordance with the law.

Applied:SIL Gold v. ITO ITA Number 1049/Del/2018 : 2019 TaxPub(DT) 554 (Del-Trib).

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

INCOME TAX ACT, 1961

Section 69C