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Income Tax Appellate Tribunal, “A” BENCH, KOLKATA
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 18.10.2023 for the AY 2016-17.
At the time of hearing, the ld. Counsel for the assessee pressed the ground no.2 raised in the memorandum of grounds which is extracted below-
“2. For that on the facts and in circumstances of the case and in law reopening of assessment under borrowed satisfaction is bad in law and should be set aside.” 03. The facts in brief are that the assessee filed the return of income during the year on 28.09.2016, declaring nil income. Thereafter, the
In the appellate proceedings, the ld. CIT (A) simply dismissed the appeal in limine upholding the assessment order by noting that the assessee did not file any information/ replies to the notices issued on various dates for furnishing the information/details.
After hearing the rival contentions and perusing the materials available on record, we find that the ld. AO has simply reopened the assessment based on the report of the DDIT (Inv.) without doing any investigation on the information received and without any application of mind. The AO has just stated in the para 3 of the assessment order that on the basis of the information received from the DDIT (Inv.) Wing, it is noted that there was transaction of ₹41,00,211/- in the account of the assessee credited through RTGS from layering of different entities as found during examination in the bank statement of M/s Banka Group and the Paper/shell companies controlled and managed by Sri Mukesh Banka and thereafter, reopened the
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 25.11.2024.