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| The Tax Publishers2019 TaxPub(DT) 7630 (Del-Trib) INCOME TAX ACT, 1961
Section 147
AO merely repeated report of Investigation Wing in the reasons and formed his belief that income chargeable to tax has escaped assessment without arriving at his satisfaction. Accordingly, there was no independent application of mind by AO to report of Investigation Wing to form the basis for recording reasons which were also proved to be incorrect. The reasons failed to demonstrate link between alleged tangible material and formation of reasons to believe that income chargeable to tax had escaped assessment. Accordingly, reassessment was quashed as invalid.
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Reassessment - Reason to believe - No independent application of mind by AO to report of Investigation Wing -
AO received information from investigation wing as to assesse having received accommodation entries in the guise of share application money. Accordingly, AO reopened assessment and made addition under section 68.Held: AO merely repeated report of Investigation Wing in the reasons and formed his belief that income chargeable to tax has escaped assessment without arriving at his satisfaction. Accordingly, there was no independent application of mind by AO to report of Investigation Wing to form the basis for recording reasons which were also proved to be incorrect. The reasons failed to demonstrate link between alleged tangible material and formation of reasons to believe that income chargeable to tax had escaped assessment. Accordingly, reassessment was quashed as invalid.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
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