| |
| The Tax Publishers2020 TaxPub(DT) 1396 (Del-Trib) : (2020) 078 ITR (Trib) 0384 INCOME TAX ACT, 1961
Section 147
As apparent from reasons recorded for reopening There was no independent application of mind by AO and conclusions of AO were at best a reproduction of conclusion in the investigation report. Indeed it was a 'borrowed satisfaction'. The reasons failed to demonstrate link between tangible material and formation of reason to believe that income had escaped assessment. Accordingly, reopening was bad in law and consequent reassessment was set aside.
|
Reassessment - Reason to believe-Borrowed satisfaction from investigation wing - No independent application of mind by AO -
AO received information from Investigation Wing as to assesse having received accommodation entry in the garb of share application money/share capital from entry providers. On the basis of this information,AO reopened assessment and made addition. Held: As apparent from reasons recorded for reopening, there was no independent application of mind by AO and conclusions of AO were at best a reproduction of conclusion in the investigation report. Indeed it was a 'borrowed satisfaction'. The reasons failed to demonstrate link between tangible material and formation of reason to believe that income had escaped assessment. Accordingly, reopening was bad in law and consequent reassessment was set aside.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE ITAT, DELHI BENCH
H.S. SIDHU, J.M.
Nigam Computers (P) Ltd. v. ITO
ITA No. 6396/Del/2017
16 January, 2020
Assessee by: R.C. Rai, CA & Kamal Sharma, CA
Department by: Manoj Kumar Chopra, Sr. Departmental Representative
This appeal filed by the assessee is directed against the order passed by the learned Commissioner (Appeals)-28, New Delhi on 30-8-2017 in relation to the assessment year 2007-08 on the following grounds :--
1. On the facts and in the circumstances of the case as well as in law the learned Commissioner (Appeals) grossly erred in holding that the re-opening of the assessment is valid in law which is otherwise bad in law and ab initio void.
 SUBSCRIBE FOR FULL CONTENT
|