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2015 (11) TMI 128 - ITAT DELHIReopening of assessment - whether the Assessing Officer has “reason to believe” that any income chargeable to tax has “eascaped assessment”? - Held that:- The legal issue raised by the assessee is exactly similar to the case of assessee’s sister concern i.e. Indo Arab Air Services vs. ACIT [2014 (7) TMI 291 - ITAT DELHI] that the reason to believe made by the AO are self-contradictory and based only on suspicion. The ld. CIT(Appeals) has decided the issue only on the issue of change of opinion or sufficiency of reasons and not on the tenability and correctness of reasons and the AO’s own contradictory reasons. The assessee has assailed the primary information itself being wrong, vague and bereft of any material. We find merit in the argument of ld. Counsel that the reason to believe as formed by the AO are not in terms as contemplated by section 147 and as mandated by the courts in the decisions referred to above. Respectfully following the above referred judgments by the Hon’ble Supreme Court, i.e., Lakhmani Mewal Das [1976 (3) TMI 1 - SUPREME Court]; Ganga Saran & Sons P. Ltd. [1981 (4) TMI 5 - SUPREME Court], Kelvinator of India Ltd. [2010 (1) TMI 11 - SUPREME COURT OF INDIA ] and Sheo Nath Singh [1971 (8) TMI 6 - SUPREME Court] we hold that the AO did not have valid reason to believe that impugned income had escaped assessment. Thereby, the reopening is quashed as bad in law. - Decided in favour of assessee.
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