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2020 (2) TMI 1305 - ITAT PUNEReopening of assessment u/s 147 - reasons for reopening of assessment - HELD THAT:- As decided in MR. KAILASH KANHAIYALAL GIDWANI, MR. SUNIL KANHAIYALAL GIDWANI, MR. AMIT KANHAIYALAL GIDWANI [2019 (10) TMI 905 - ITAT PUNE] transaction was properly recorded in the assessee’s books of account. The assessee is payer and not the recipient of loan. Once the assessee paid ₹ 2.00 lakh to Kanhaiyalal Vishandas Gidwani out of her regular books of account, there cannot be any question of the assessee not substantiating the source of loan, which is overtly from the regular books of account maintained by her. This sort of enquiry, if warranted, ought to have been conducted in the hands of the recipient to justify the source of the loans received and not the payer of the loan, who has given loan out of her regular books of account. It is clear that the reasons recorded by the AO for initiating reassessment proceedings are invalid and do not justify initiation of re-assessment. Existence of reasons for escapement of income are sine qua non to embark upon the assessment or reassessment u/s 147 - Change or no change of opinion, as argued by the DR, are the factors to be considered after fulfilling the jurisdictional condition of there being an escapement of income, in the absence of which no assessment or reassessment can be made u/s 147. As it is apparent from the above discussion that no valid reasons exist about the escapement of the assessee’s income, we hold that the AO was not justified in taking recourse to the provisions of section 147 - We, therefore, strike down the initiation of assessment proceedings and the consequential assessment order passed u/s 147. AO was not justified in taking recourse to the provisions of section 147 . We, therefore, strike down the initiation of assessment proceedings and the consequential assessment order passed u/s 147 of the Act and also the impugned order. - Decided in favour of assessee.
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