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TMI Blog2017 (8) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... ect reasons and he did not apply independent mind on information received from DDIT(Inv.) prior to recording of reasons, the reopening of assessment in such a case was clearly invalid. We are, therefore, of the considered opinion that once it is found that the income, for which the AO had initially formed a reason to believe that it had escaped assessment, has not escaped assessment, it is not open to the AO to assess some other income. Appeal of the Revenue is dismissed - ITA No.1428/Del./2014 - - - Dated:- 13-4-2017 - Shri I.C. Sudhir, Judicial Member And Shri L.P. Sahu, Accountant Member For The Assessee : Sh. Amrit Lal, Sr. DR For The Revenue : Sh. B.L. Gupta, ITP ORDER Per L.P. Sahu, A.M.: This is an ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The details of these entries are as under : Addressee Bank a/c Value of entry Instrument No. Date of entry Taken Name of account holder of entry giving a/c Bank account from which entry given Nainital Bank 500750 491584 22.07.2000 Rajeev Kr. Agarwal 3616 SBP DG Nainital Bank 500750 493642 - Do- Murari Lal 14253 Jailaxmi Coop. Bank Fatehpuri, Delhi Nainital Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee further explained that the information so relied on for initiation of proceedings u/s. 147 is wrong and the assessee has neither received any such amount as mentioned in the information nor is there any credit entry thereof in any books of account maintained by assessee. The AO, however, did not accept the explanation of the assessee and made addition of ₹ 24,03,100/- as escaped income on account unexplained cash credit u/s. 68 of the IT Act vide reassessment order dated 19.12.2008. 4. Apart from the above, the Assessing Officer further made following additions : (i). Share application money Rs.2,30,57,400/- (ii). Cessation of liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) and submitted that the reassessment was made on the basis of wrong information, which did not pertain to the assessee and the Assessing Officer has not verified the same. Hence, the reason to believe formed by the AO for reopening the assessment u/s. 147 has rightly been held as invalid leading to assessment order void ab initio. It was submitted that once the transactions of accommodation entry as contained in the alleged information was not proved to pertain to the assessee and the original reason to believe escapement of income stood collapsed, the ld. Assessing Officer was not justified to acquire jurisdiction to assess other incomes even after insertion of Explanation 3 to section 147 by Finance Act, 2009 w.e.f. 01.04.1989. Relian ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of assessee has only stated that the explanation of the assessee is not acceptable and this entry remains unexplained in the hands of assessee as has been arrived by the Investigation wing of the department. There is no rebuttal of assessee s contention on the part of revenue or any application of mind by the AO to prove that the alleged accommodation entries as contained in the information were actually received by the assessee. Therefore, the reason to believe formed by AO on the basis of alleged accommodation entries of ₹ 24,03,100/-, as contained in the information, stands collapsed, having been formed without any material on record and application of mind and accordingly, the addition so made on the basis of such unsustaina ..... X X X X Extracts X X X X X X X X Extracts X X X X
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