The Tax Publishers2020 TaxPub(DT) 0005 (Agra-Trib)

INCOME TAX ACT, 1961

Section 147

AO reopened assessment merely on the basis of bare information received by him from CBDT that assessee had filed a declaration under VDIS, 1997, in which, she had declared Rs. 10 lakhs but had not paid tax thereon and certificate was not issued to her. It was this bald so called information, which was reproduced by AO in the reasons recorded and he, without any further inquiry thereon, i.e., without any independent application of his own mind to it, formed his alleged reason to believe escapement of income. The reopening was thus liable to be set aside and reversed on this score alone.

Reassessment - Reason to believe - Bare information received from CBDT as to assessee having made declaration under VDIS, 1997 and not having paid tax -

AO received information from CBDT as to assessee having filed declaration under VDIS, 1997, in which she had declared an amount of Rs. 10 lakhs on 31-12-1997 but had not paid tax thereon and the certificate was also not issued to him. Accordingly, AO reopened assessment and made addition.Held: AO reopened assessment merely on the basis of bare information received by him from CBDT that assessee had filed a declaration under VDIS, 1997, in which, she had declared Rs. 10 lakhs but had not paid tax thereon and certificate was not issued to her. It was this bald so called information, which was reproduced by AO in the reasons recorded and he, without any further inquiry thereon, i.e., without any independent application of his own mind to it, formed his alleged reason to believe escapement of income. The reopening was thus liable to be set aside and reversed on this score alone.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 1998-99

IN THE ITAT, AGRA (SMC) : AGRA BENCH

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