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| The Tax Publishers2020 TaxPub(DT) 0353 (Kol-Trib) INCOME TAX ACT, 1961
Section 147
Even if information given by another AO was adverse against assessee, at most it might trigger 'reason to suspect' then AO had to make reasonable enquiry and collect material which would make him believe that there was, in fact an escapement of income. But, AO without application of mind simply reopened assessment which was not sustainable in law as AO had acted based on information received by him from another ITO for the purpose to conduct further inquiry only.
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Reassessment - Validity - Reason to believe - Information received from another ITO--No further enquiry made by AO
AO based on information emanated from another ITO reopened assessment and made addition under section 68 in assessee's hands. Assessee's case was that AO did make no reasonable enquiry and collect material which would make him belive that there was in fact an escapement of income.Held: Even if information given by another ITO, was adverse against assessee, at most it might trigger 'reason to suspect', then AO had to make reasonable enquiry and collect material which would make him believe that there was in fact an escapement of income. But, AO without application of mind simply reopened assessment which was not sustainable in law as AO had acted based on information received by him from another ITO for the purpose to conduct further inquiry only.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE ITAT, KOLKATA BENCH
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