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| The Tax Publishers2019 TaxPub(DT) 7673 (Kol-Trib) INCOME TAX ACT, 1961
Section 147 read with Section 148
Reassessment made by AO was not justified as reasons recorded were vague and was only reproduction of the information, which AO received from the DDIT (Inv.). Moreover, AO failed to mention the relevant facts on basis of which AO formed the belief that income of assessee had escaped assessment.
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Reassessment - Validity - Lack of enquiry by AO -
AO re-opened assessee's case on the basis of an information received from the DIT (Investigation), New Delhi about assessee-company being beneficiary of accommodation entry. Assessee contended that reading of reasons recorded did not reveal any enquiry conducted by AO before recording of reasons to invoke the jurisdiction to reopen the assessment of assessee. Held: The repetition of certain portions of the investigation report of DDIT without any reasons independently recorded by AO on the basis of 'borrowed satisfaction' of the DDIT (Inv.), could not be the basis for reopening of assessment under section 147. Therefore, following the ratio in the case of Meenakshi Overseas Pvt. Ltd. ((2017) 395 ITR 677 (Del) : 2017 TaxPub(DT) 1791 (Del-HC)) and various case laws as referred, it was held that jurisdictional condition precedent in section 147 had not been satisfied by AO for reopening the assessment.
Followed:Meenakshi Overseas Pvt. Ltd. ((2017) 395 ITR 677 (Del) : 2017 TaxPub(DT) 1791 (Del-HC))
REFERRED : CIT v. Highgain Finvest (P) Ltd. (2007) 164 Taxman 142 (Del) : 2008 TaxPub(DT) 0695 (Del-HC); Oriental Insurance Co. Ltd. v. CIT (2015) 378 ITR 421 (Del) : 2015 TaxPub(DT) 3662 (Del-HC); Ganga v. ITO (1981) 130 ITR 1 (SC) : 1981 TaxPub(DT) 0952 (SC)
FAVOUR : In assessee's favour
A.Y. : 2005-06
IN THE ITAT, KOLKATA BENCH
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