M/s Ganesh Ram Dokania Vs. ACIT, Central Circle-2, Patna

Parties Involved

Facts Summary

The assessee's premises were searched under section 132 of the Income Tax Act on 01.08.2024, which led to an assessment order under section 153A read with section 144 of the Act dated 27.12.2016. The counsel for the assessee provided details, including information about loans raised during the assessment year. The assessment was reopened under section 147 of the Act on 28.03.2018 after the Assessing Officer (AO) recorded reasons to believe that the assessee was a beneficiary of accommodation entries to the tune of Rs. 3,20,00,000/-. The assessment was framed under section 147 of the Act, adding Rs. 3,20,00,000/- to the assessee's income. The assessee challenged this order before the Commissioner of Income Tax (Appeal), which was confirmed. The assessee argued that the reopening of the assessment was invalid and void-ab-initio as it was based on borrowed satisfaction and without any independent application of mind.…

Legal Issues

• 1. Whether the reopening of the assessment by the AO under section 147 of the Act was valid and justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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