The Tribunal held that the AO made reference to a list of 13 companies and observed that as per MCA data and ITD module, these companies are paper/ shell companies having no real existence and business activities. AO himself has not made any inquiry about the nature of these companies. Assessee has not taken money from these 13 companies. He just reproduced certain information from other sources and believed it as a gospel truth without analytically cross-verifying with the assessee. There was no application of mind at the end of the AO while forming the belief that income has escaped assessment. The reopening of assessment is quashed. (AY. 2011-12)
Jainco Transmission Ltd. v. DCIT (2024) 230 TTJ 769 / 239 DTR 225 / 38 NYPTTJ 738 (Kol)(Trib)
S. 147 : Reassessment-Non application of mind-Shell companies-Web site of the Income-tax portal-Re produced information without cross verification-The reopening of assessment is quashed.[S. 148]
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