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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 on facts and circumstances of the case and in law in deleting the addition of Rs. 24,03,100/- on account of unexplained cash credit by way of accommodation entries? 3. Whether Ld. CIT(A) was correct on facts and circumstances of the case and in law in deleting the addition of Rs. 2,30,57,400/- made by AO on account of share application money received from those parties whose genuineness and creditworthiness was not proved?" 2. The brief facts of the case are that the return of income filed by assessee on 29.10.2001 declaring total income of Rs. 1,69,735/- was processed u/s. 143(1) on 20.06.2002. Thereafter, a notice u/s. 148 was issued on 19.03.2008 after recording the following reasons : The assessee has filed its return of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts of the case, I have reason to believe that income to the extent of at least Rs. 24,03,100/- has escaped assessment and this is a fit case for initiation of proceedings u/s. 147 of the Income Tax Act, 1961." 3. In response to notice u/s. 148, the assessee submitted that the return filed originally on 29.10.2001 may be treated to have been filed in response to notice u/s. 148. The 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, urged for restoration of assessment order. 7. On the other hand, the ld. Counsel for the assessee relied on the order of the ld. CIT(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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow. An affidavit to this effect was also furnished before the lower authorities. The ld. Assessing Officer, however, while rejecting the explanation 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 Rs. 24,03,100/-, as contained in the information, stands collapsed, havi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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