The Tribunal observed that during the course of original assessment proceedings u/s. 143(3), the Assessee was specifically asked by the AO to discharge its onus u/s. 68 of the Act for the share application money received by it and after satisfying himself, he had accepted the transaction as genuine. Therefore, in the light of the proviso to u/s. 147 of the Act, there was no failure on part of the Assessee to disclose fully and truly, all material facts relating to the information regarding accommodation entries which was considered as new tangible material by the AO to validate the reopening of the assessment. Further, there was no such allegation in the reasons recorded by the AO for reopening that the Assessee had failed to disclose fully and truly the material facts necessary for assessment. In view of the above, the Tribunal held that the notice issued
u/s. 148 was bad in law and the assessment framed u/s. 147 was rightly quashed by the first appellate authority. (AY. 2007-08)