|The Tax Publishers2021 TaxPub(DT) 0058 (Del-Trib)
INCOME TAX ACT, 1961
Reopening of assessment merely based on information received from investigation wing without independent application of mind or investigation could not be treated as valid.
Reassessment - Reopening on the basis of information emanated from Investigation Wing - No independent application of mind by AO -
AO based on information emanated from investigation wing as to assessee having obtained accommodation entries from certain Hawala dealers, reopened assessment and made addition under section 69C. Held: AO reopened assessment merely based on information received from investigation wing without independent application of mind or investigation, and, therefore, reopening under section 148 wholly on the basis of borrowed satisfaction could not be treated as valid and, therefore, reassessment was set aside.
Relied:Pr. CIT v. RMG Polyvinyl Ltd. (2017) 396 ITR 5 (Del) : 2017 TaxPub(DT) 2034 (Del-HC), Pr. CIT v. G & G Pharma Ltd. (2015) 384 ITR 147 (Del-HC) : 2015 TaxPub(DT) 4054 (Del-HC) and Signature Hotels (P) Ltd. v. ITO (2011) 338 ITR 51 (Del-HC) : 2011 TaxPub(DT) 1992 (Del-HC).
FAVOUR : In assessee's favour.
A.Y. : 2010-11
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