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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 ..... g 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 set off of loss against income determined under section 115BBE of the Act. 3. Briefly the facts are, the assessee is a resident company stated to be engaged in the business of car rental. For the assessment year under dispute, assessee filed its return of income on 27-07-2009. Subsequently, the return of income so filed was revised by filing a revised return of income on 30-09-2009 declaring loss of R.4,26,445/-. The return of income filed by the assessee was processed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 material was available before the assessing officer to come to a conclusion that the unsecured loan provided by the assessee is in the nature of accommodation entry. He submitted, merely relying upon the information received from the Investigation Wing the assessing officer reopened the assessment. Thus, he submitted, the reopening of assessment since is based on borrowed satisfaction, is invalid. He submitted, in course of assessment proceedings, the assessing officer has not referred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action, 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 the present case, the assessing officer had tangible material to form a belief that income has escaped assessment. That being the case, in our considered view, the assessing officer has validly initiated proceedings under section 147 of the Act. Additional gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considered rival submission and perused materials on record. Undisputedly, the issue arising for consideration is concerning genuineness of unsecured loan advanced of Rs. 1,55,00,000/- to two parties. On a perusal of the bank statement of the assessee, a copy of which is at page 31 of the paper book, it is observed that prior to advancement of loans, huge amount of funds have been transferred to assessee's account. On an examination of the bank statement, a regular pattern, which has come to our notice, is, immediately before advancement of loan, the credit balance in the account increases and immediately after the loan is advanced, the balance substantially diminishes. The source from which the assessee had received such funds has not been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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