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| The Tax Publishers2019 TaxPub(DT) 7242 (Del-Trib) INCOME TAX ACT, 1961
Section 147
AO had simply relied on information received from CIT (Central)/DIT(Inv) to form conclusion about escapement of income and there was complete absence of tangible material and rational nexus between information received by AO with formation of belief as to tax escapement, accordingly, re-assessment proceedings were quashed.
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Reassessment - Under section 147 - Reason to believe - Information received from investigation wing--No tangible material
AO received information from investigation wing as to assessee having received accommodation entries. Accordingly, AO reopened assessment and made addition. Assessee contended that when reasons were recorded for reopening, the basic information and material which was required to reopen the case was itself not available with AO at that relevant time, and AO had made reopening merely and solely on the basis of a letter of DIT(Inv.) without anything more.Held: AO had simply relied on information received from CIT (Central)/DIT(Inv) to form conclusion about escapement of income and there was complete absence of tangible material and rational nexus between information received by AO with formation of belief as to tax escapement, accordingly, re-assessment proceedings were quashed.
Relied: Pr. CIT v. Meenakshi Overseas Pvt. Ltd. (2017) 395 ITR 677 (Del) : 2017 TaxPub(DT) 1791 (Del-HC) and SBS Realtors (P) Ltd. v. ITO [ITA No. 7791/Del/2018, dt. 1-4-2019] :2019 TaxPub(DT) 1991 (Del-Trib). Distinguished:Sonia Gandhi & Ors. v. Asstt. CIT & Ors. [W.P. (C) Nos. 8293, 8482, 8483 of 2018, Order, dt. 10-9-2018] : 2018 TaxPub(DT) 5844 (Del-HC)
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2005-06
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