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2014 (7) TMI 644 - ITAT HYDERABADReopening of assessment u/s 148 - no option to file return was given – Held that:- The CIT(A) has himself accepted that 30 days’ time as provided in the notice u/s. 148 of the Act to the assessee for submission of the return of income has not been provided to the assessee and the assessment was finalised on 28.1.2012 - the CIT(A) has erred in deciding the issue in favour of the Revenue – Decided in favour of Assessee. Income escapement - Whether the discrepancy between the income shown as per the return of income vis-a-vis as per certificate of TDS would necessarily lead to escapement of income for assuming jurisdiction u/s. 148 of the Act – Held that:- A variation in these two figures does not necessarily lead to escapement of income - Mere need to verify the discrepancy does not bring the matter within the scope of cases in which reassessment proceedings can be validly initiated - There is subtle, though significant, distinction between reason to believe and reason to suspect - While the former is good enough to hold that income has escaped assessment and initiate suitable remedial measures in respect thereof, the latter can, at best, be the ground to verify and examine the matter further - Mere fact that matter needs to be verified and examined further can never be a reason good enough to believe that income has escaped assessment and to invoke the reassessment proceedings – thus, the reopening of assessment on the basis of receipt shown in the TDS certificate is not sustainable in law - the CIT(A) has wrongly held that the AO rightly initiated proceeding u/s. 147 of the Act – The decision in RAFEEQ IQBAL Versus INCOME TAX OFFICER [2013 (11) TMI 8 - ITAT HYDERABAD] followed - Decided in favour of Assessee.
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