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| The Tax Publishers2019 TaxPub(DT) 1991 (Del-Trib) INCOME TAX ACT, 1961
Section 147
Where AO had simply reopened assessment on the basis of information provided by Investigation Wing without any independent application of mind, reassessment could not be held as valid.
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Reassessment - Reason to believe - Information emanated from investigation wing - No independent application of mind
AO received information from investigation wing as to assessee being beneficiary of certain entry operators. Accordingly, AO reopened assessment under section 148 and made addition. Assessee challenged this on the ground of no independent application of mind on AO's part.Held: There was no crucial link between information made available to AO and formation of belief as to escapement of income. There was no mention of document seized from alleged entry operators suggesting receipt of accommodation entries by the assessee. Accordingly, AO had simply reopened assessment on the basis of information provided by Investigation Wing without any independent application of mind, and therefore, reassessment was set aside.
Supported:PCIT v. RMG Polyvinyl (I) Ltd. (2017) 396 ITR 5 (Del-HC) : 2017 TaxPub(DT) 2034 (Del-HC) and Pr. CIT-6 v. Meenakshi Overseas (P) Ltd. (2017) 395 ITR 677 (Del-HC) : 2017 TaxPub(DT) 1791 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
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