Balkrishna Mangaldas Thakkar Vs DCIT (Gujarat High Court)
Gujarat High Court held that reopening of assessment under section 148 of the Income Tax Act alleging accommodation entries not sustained in absence of any supporting, independent, tangible material. Accordingly, reopening quashed as genuineness of loan established.
Facts- By this petition under Article 226 of the Constitution of India, the petitioner has challenged the validity of the order passed under Section 148(d) of the Income Tax Act, 1961 dated 31.03.2022 whereby the respondent has held that this was a fit case for issuance of notice under Section 148 of the Act for the reason that income chargeable to tax has escaped assessment and the notice of even date issued under Section 148 of the Act for Assessment Year 2015-16.
Conclusion- Held that the petitioner has entered into a genuine temporary loan transaction through banking channel. The respondent – Assessing Officer, however, failed to consider such documents on record and has jumped to the conclusion that the petitioner is one of the beneficiaries, who has availed / obtained accommodation entries by way of the banking channel against cash to the tune of Rs.1,25,00,000/- without there being any supporting, independent, tangible material in possession of the Assessing Officer. It is, therefore, evident that the notice issued under Section 148 of the Act for reopening as well as the order passed under Section 148A(d) of the Act are on the basis of the inference drawn pursuant to the search, which had taken place on 30th July, 2018 in case of Mehta Sony Group. Thus, the impugned notice dated 31stMarch, 2022 issued under Section 148 of the Act as well as the order issued under Section 148A(d) of the Act are hereby quashed and set aside.
