The Tax Publishers2019 TaxPub(DT) 2357 (Bom-HC) : (2019) 262 TAXMAN 0404

INCOME TAX ACT, 1961

Section 147

Where assessee had established that the receipts in question never related to the relevant assessment year, then AO simply cannot take shelter under the ground that all these aspects can be examined under the reassessment proceedings because reopening of the assessment cannot be resorted to for carrying out fishing inquiries.

Reassessment - Validity - Reopening of assessment whether a means for Fishing enquiries -

AO had received information from Investigation unit that assessee-company was beneficiary of certain bogus accommodation entries provided by two bogus companies on which search was conducted. In reply to notice under section 133(6), assessee submitted that said sums were received in earlier assessment year and were already verified and assessed by revenue authorities. However, AO issued reassessment notice in respect of the said sums in the relevant assessment year alleging that income chargeable to tax had escaped assessment. Held: In clear terms, AO had not indicated any prima facie ground why such transaction was not genuine and would give rise to escapement of income chargeable to tax. It is well settled that for mere verification, the AO cannot reopen assessment. It is often stated that reopening of the assessment cannot be resorted to for carrying out fishing inquiries.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :



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