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| The Tax Publishers2020 TaxPub(DT) 1007 (Pune-Trib) INCOME TAX ACT, 1961
Section 147
As evident, AO based on mere suspicion regarding genuineness of sources of investment, took the view income had escaped assessment. There was no prima facie reason for AO to come to that line of reason to belive about concealed income. It was a case of issuing notice under section 147 for conducting roving enquiries and without having any tangible material that works as a 'live wire'. Accordingly, reassessment proceedings were invalid.
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Reassessment - Reason to believe - No tangible material - Invocation of section 147/148 jurisdiction to conduct roving enquiries
AO reopened assessment on the ground that assessee has given Rs. 3 lakhs to one 'G' towards investment in Adarsha CHS, and genuineness of sources of this investment was not proved, therefore, income chargeable to tax to that had escaped assessment within the meaning of section 147.Held: As evident, AO based on mere suspicion regarding genuineness of sources of investment, took the view income had escaped assessment. There was no prima facie reason for AO to come to that line of reason to belive about concealed income. It was a case of issuing notice under section 147 for conducting roving enquiries and without having any tangible material that works as a 'live wire'. Accordingly, reassessment proceedings were invalid.
Followed:
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2009-10
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