The Tax Publishers2020 TaxPub(DT) 4411 (Del-Trib)

INCOME TAX ACT, 1961

Section 147

Reasons recorded for reopening of assessment being replica of information received from investigation wing, could not be a tangible material per se and therefore, very initiation of proceedings under section 147/148 was bad-in-law on account of no independent application of mind on part of AO.

Reassessment - Reasons to believe - No independent application of mind by AO -

AO received information from investigation wing as to assessee having booked bogus profit on commodity transaction. Accordingly, AO reopened assessment and made addition under section 68. Assessee contended that AO proceeded merely on the basis of report given by Investigation Wing and had not preferred to verify the same from audited financials brought before him by the assessee.Held: In the reasons recorded for reopening assessee was shown to have earned profit of Rs. 1,37,260 from trading commodities allegedly as bogus profit where as per audited balance sheet, profit and loss account and Schedule IC, sales and other income assessee has booked profit from commodities at Rs. 149,19,900 and not Rs. 1,37,250. Accordingly, there was no application of mind on part of AO before recording reasons to believe which being replica of information received from investigation wing, could not be a tangible material per se. Accordingly, very initiation of proceedings under section 147/148 was bad-in-law, hence not sustainable.

REFERRED :

FAVOUR : In assessees favour.

A.Y. : 2010-11



IN THE ITAT, DELHI BENCH

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619 (11 am - 5 pm)

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com