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| The Tax Publishers2021 TaxPub(DT) 4348 (Del-Trib) INCOME TAX ACT, 1961
Section 147
AO had reopened assessment second time without application of mind solely on the basis of information received from the investigation wing, out of mere change of opinion, which was not permissible under the law. Therefore, reassessment was set aside.
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Reassessment - Validity - Change of opinion by AO -
AO received information from Investigation Wing that assessee had obtained accommodation entries amounting to Rs. 50,00,000 under the garb of share capital/share premium from Aseem Gupta group, whose residential and business premises were searched/surveyed by the investigation wing. Accordingly, AO reopened assessment and made addition. Held: Due enquiry was made by AO regarding share capital received from M/s. Moderate Credit Corporation Ltd. and after being satisfied, he accepted returned income of assessee vide order passed under section 147/143(3) while framing assessment order, by way of first reopening recorded the fact that, “ statement of assessee had been recorded under section 131(1) and the facts were again verified during the course of statement under oath.” These facts again went to prove that AO had reopened assessment second time without application of mind solely on the basis of information received from the investigation wing out of mere change of opinion, which was not permissible under the law.
Followed:CIT v. Kelvinator of India Ltd. - (2010) 320 ITR 561 (SC) : 2010 TaxPub(DT) 1335 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
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