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| The Tax Publishers2019 TaxPub(DT) 7716 (Del-Trib) INCOME TAX ACT, 1961
Section 147
AO had recorded incorrect facts in reasons for reopening of assessment which were factually incorrect, contradictory and vague. Accordingly, AO did not verify report received from investigation wing and did not apply his mind to the information as well as facts of the case, therefore, reopening of assessment was bad in law and quashed as invalid.
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Reassessment - Validity - Reason to believe - No independent application of mind by AO as regards report of investigation wing
AO received information from investigation wing as to assessee having made cash payment from undisclosed sources towards purchase of certain property. Accordingly, AO reopened assessment and made addition. Assessee challenged this on the ground of no independent application of mind by AO.Held: AO had recorded incorrect facts in reasons for reopening of assessment which were factually incorrect, contradictory and vague. Accordingly, AO did not verify report received from investigation wing and did not apply his mind to the information as well as facts of the case, therefore, reopening of assessment was bad in law and quashed as invalid.
Relied:Pr. CIT v. G & G Pharma India Ltd. (2016) 384 ITR 147 (Del.) : 2015 TaxPub(DT) 4054 (Del-HC), Pr. CIT v. Meenakshi Overseas Pvt. Ltd. (2017) 395 ITR 677 (Del.) : 2017 TaxPub(DT) 1791 (Del-HC) and Pr. CIT v. RMG Polyvinyl (I) Ltd. (2017) 396 ITR 5 (Del.) : 2017 TaxPub(DT) 2034 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
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