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| The Tax Publishers2020 TaxPub(DT) 0955 (Pune-Trib) INCOME TAX ACT, 1961
Section 147
Since none of issues for which reopening was initiated, no additions were made in respect of them, thus, reopening of assessment was bad in law.
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Reassessment - Validity - No additions were made on issues for which reopening was initiated -
Assessee assailed validity of reopening of assessment under section 147, on account of addition made in respect of section 2(22)(e). Held: The basis of re-assessment proceedings was that AO should have reason to believe that some income had escaped assessment, that belief should lead him to reach a logical conclusion i.e. in final assessment he should bring those incomes which had earlier escaped from tax, should be taxed. In the instant case, AO failed to do so. None of issues for which reopening was initiated, no additions were made in respect of them. Firstly, basic criteria of section 147/148 was not fulfilled as evident from action of AO; secondly, there was no rational and intelligible nexus between reasons and belief.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2009-10, 2008-09
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