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TMI Blog2025 (3) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... ved from Investigation wing AO has tried to reopen the assessment without in any manner verifying the said information with the material available on record. This is clearly an effort of the AO to review the completed proceedings.
Reopening in the instant case is not by proper application of mind and the reasons recorded by the AO are vague and not supported by independent verification done from the material already available on record. Further assessee has been able to rebut the allegation made in the reasons recorded of receiving the accommodation entry which remained uncontroverted. Thus the reassessment proceedings as initiated vide notice issued u/s 148 are hereby quashed. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... se. 5. Before us, the Ld. AR of the assessee argued that during the course of assessment proceedings, assessee has filed all the requisite details which are placed at paper book pages 43 to 325 filed before us. He further contended that in the reasons recorded, available at page 433 of the paper book, it is alleged that there has been failure on the part of the assessee to truly and fairly disclose all the material facts however, no instance has been pointed out as to how there has been failure on the part of the assessee. In the reason recorded, it is alleged that assessee has obtained accommodation entry of Rs. 21,79,860 from Hitesh Jain through his paper/ dummy concern in the name of M/s Raghuveer Singh Davinder Singh (Prop. Devinder Kumar) 2263,68/15, Ist Floor, Gali Raghunandan Naya Bazar, Delhi in a/c No. 1950002100002268 PNB, Karnal however, there is no credit of this amount in the bank account of the assessee. Ld. AR submits that during the course of assessment proceedings, vide notice dt.17.7.2014 available at PB pages 41-42 assessee was asked to file all bank entries with their respective narrations. In reply the assessee has already filed all these details which are ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the bank account of the assessee already available on record and therefore, the reasons so recorded are vague and accordingly the entire reassessment order framed on vague and baseless reasons deserves to be quashed. 6. On the other hand, ld. Sr. D/R vehemently supported the order of the lower authorities and submits that the AO in the original assessment proceedings has not verified the sales made. The AO has received specific information that assessee has received accommodation entry from Shri Hitesh Jian, therefore the action of the AO in re-opening the assessment is fully justified and he prayed accordingly. 7. We have heard the rival submissions and perused the material available on records. In the instant case, the assessment was firstly completed u/s 143(3) wherein the AO after examine all the submissions filed by the assessee as available on records, reached to the conclusion that the trading results declared by the assessee are correct and petty disallowance of Rs. 50,000/- out of various expenses claimed was made. Thereafter, based on some information received from the Investigation Wing, the AO framed an opinion that the assessee has received accommodation entry of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he garb of re-opening the assessment, the review would take place. One must treat the concept of 'Change of opinion' as an in-built test to check abuse of power by the assessing officer." The hon'ble Bombay High court in the case of Hindustan Lever Ltd. Vs. ACIT & others (supra) has held as under: 21. The reasons recorded by the Assessing Officer nowhere state that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for the assessment of that assessment year. It is needless to mention that the reasons are required to be read as they were recorded by the Assessing Officer. No substitution or deletion is permissible. No additions can be made to those reasons. No inference can be allowed to be drawn based on reasons not recorded. It is for the Assessing Officer to disclose and open his mind through reasons recorded by him. He has to speak through his reasons. It is for the Assessing Officer to reach the conclusion as to whether there was failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the concerned assessment year. It is for the Assessing Officer to form his opinio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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