Ahmedabad ITAT Quashes Reopening In Absence Of Tangible Material With AO To Form Reason To Believe Escaped Assessment
Live LawThe Ahmedabad ITAT quashed reopening proceedings finding that there was no tangible material available with the AO to form a reason to believe that the income of assessee has escaped assessment. The Bench of Waseem Ahmed and Siddhartha Nautiyal observed that “simply that Shri Prakash bhai Ishwar bhai Changela and the assessee are maintaining the bank account in the Social Co-operative cannot be a ground to draw a conclusion that the assessee is engaged in the accommodation entry and consequently form the reason to believe that the income of the assessee has escaped assessment”. There was the information received by the Assessing Officer with respect to the party namely Prakash bhai Ishwar bhai Changela, proprietor of M/s Reliance Enterprises who was maintaining bank account among other banks in the Social Co-operative Bank Ltd., who was believed by the AO to be engaged in providing accommodation entry. The Bench noted that there was no tangible material available with the Assessing Officer to form the reason to believe that the income of the assessee has escaped assessment.