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| The Tax Publishers2021 TaxPub(DT) 2802 (Mum-Trib) INCOME TAX ACT, 1961
Section 147
AO had not formed a prima facie and independent belief in the reasons recorded that income had escaped assessment but initiated proceedings under section 147 for carrying out verification of facts/information qua share premium raised by assessee. Under these facts and circumstances, reopening of assessment was invalid.
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Reassessment - Validity - Reopening for carrying out verification of facts qua share premium raised by assessee -
AO reopened assessment on the reasoning that facts and information as regards share premium were not verifiable as no return of income was filed by assessee and considering these facts, he had reason to believe that income chargeable to tax had escaped assessment. Assessee challenged the reopening of assessment under section 147 as invalid. Held: AO had not formed a prima facie and independent belief in the reasons recorded that income had escaped assessment but initiated proceedings under section 147 for carrying out verification of facts/information qua share premium raised by assessee. Under these facts and circumstances, reopening of assessment was invalid.
Relied:Pr. CIT v. Manzil Dineshkumar Shah (2018) 406 ITR 326 (Guj-HC) : 2018 TaxPub(DT) 2717 (Guj-HC), Gujrat High Court in the case of PCIT v. Manzil Dineshkumar Shah, Inductotheran (India) P. Ltd. v. DCIT (2012) 356 ITR 481 (Guj-HC) : 2012 TaxPub(DT) 3254 (Guj-HC), Chhugamal Rajpal v. S P Chaliha and Ors. Ltd. (2019) 416 ITR 435 (SC) : 2019 TaxPub(DT) 2361 (Bom-HC), Nivi Trading Ltd v. Union of India (2015) 375 ITR 308 (Bom-HC) : 2015 TaxPub(DT) 2227 (Bom-HC), CIT v. Maniben Lalji Shah (2006) 283 ITR 453 (Bom- HC) : 2006 TaxPub(DT) 0046 (Bom-HC) and CIT v. Batra Bhatia Company (2010) 321 ITR 526 (Del- HC) : 2010 TaxPub(DT) 169 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
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