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TMI Blog2021 (10) TMI 1241X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee was simply processed under section 143(1) of the Act, the assessing officer had no occasion to verify the genuineness of the loan transaction. When the assessing officer received specific information concerning the genuineness of the loan transaction, he had tangible material available before him to reopen the assessment. While recording the reasons for reopening the assessment, the assessing officer has to prima facie form a belief that the material on record indicate escapement of income. At the stage of reopening, the assessing officer is not required to record any conclusive finding regarding the escapement of income, as, that is a matter which can be ascertained in course of assessment proceedings. Thus, in the facts of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... H KUMAR (ACCOUNTANT MEMBER) Appellant by Shri Navnit Choudhary, AR Respondent by Shri Bharat Andhle, DR ORDER Per Saktijit Dey (JM) This is an appeal by the revenue against order dated 14-05-2018 of learned Commissioner of Income Tax (Appeals)-54, Mumbai for the assessment year 2009-10. 2. The grounds raised by the assessee in the Memorandum of Appeal are concerning the addition of ₹ 6,20,000/-, being the commission income for providing accommodation entries through unsecured loans to two parties. Of course, subsequently, the assessee, vide letter dated 01-12-2020 has filed additional ground challenging the validity of reopening of assessment under section 147 of the Income Tax Act, 1961 and also claiming ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... non genuine and are in the nature of accommodation entries. Having done so, the assessing officer estimated the commission income at 4% on the alleged unsecured loan of ₹ 1,55,00,000/- and added an amount of ₹ 6,20,000/-. Against the assessment order so passed, assessee preferred an appeal before learned Commissioner (Appeals). However, learned Commissioner (Appeals) confirmed the addition made by the assessing officer. 4. At this stage, we must deal with the additional grounds raised by the assessee. In ground 1 of additional grounds, the assessee has challenged the validity of the reopening of assessment under section 147 of the Act. It is the contention of learned authorized representative of the assessee that no tangible ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting that certain unsecured loans advanced by the assessee during the year are non genuine. Based on such opinion, the assessing officer reopened the assessment. Thus, it is very much clear since the return of income filed by the assessee was simply processed under section 143(1) of the Act, the assessing officer had no occasion to verify the genuineness of the loan transaction. Therefore, when the assessing officer received specific information concerning the genuineness of the loan transaction, he had tangible material available before him to reopen the assessment. While recording the reasons for reopening the assessment, the assessing officer has to prima facie form a belief that the material on record indicate escapement of income. At t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing officer. 9. The learned departmental representative, strongly relying upon the observations of assessing officer and learned Commissioner (Appeals) submitted that the assessee has failed to establish the genuineness of the loan transaction. Drawing our attention to the bank statement of the assessee, he submitted, immediately prior to advancement of loan, huge funds have come to assessee s account. Thus, he submitted, the loan transaction cannot be considered as genuine. 10. We have considered rival submission and perused materials on record. Undisputedly, the issue arising for consideration is concerning genuineness of unsecured loan advanced of ₹ 1,55,00,000/- to two parties. On a perusal of the bank statement of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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