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2016 (2) TMI 1243 - ITAT DELHIReopening of assessment u/s 148 - HELD THAT:- We note that in the operative paragraph the AO has held that “since the expenditure of ₹ 2,47,468/- were incurred by the assessee through credit card remained unexplained, have reason to believe that income to the tune of ₹ 2,47,468/- has escaped assessment”. This conclusion of the AO is factually baseless as this issue was posed to the assessee by DCIT, Banglore replying to his notices and the DR has into disputed that copies of the said notices and reply was filed before the AO on the assessment record. In this situation it was on the AO to peruse the relevant assessment record of AY 2005-06 which forming reason to believe and thus it is safely presumed that the AO initiated reassessment proceedings u/s 147 and issued notice u/s 148 of the Act without application of mind working in a mechanical manner and thus the same are not sustainable in the facts and on law. Respectfully following the dicta laid down by jurisdictional High Court in the case of CIT vs. G & G Pharma [2015 (10) TMI 754 - DELHI HIGH COURT] we are inclined to hold that the AO issued notice u/s 148 of Act on the wrong and invalid assumption of Jurisdictional and all subsequent proceedings is pursuance thereto can’t be held as sustainable and valid hence, the same deserve to be quashed and we quash the same. It is ordered accordingly. Accordingly, legal ground no. 1 & 2 of the assessee are allowed.
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