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2016 (3) TMI 419 - ITAT DELHIReopening of assessment - sufficiency or correctness of the material - Held that:- When no assessment u/s 143(3) of the Act was completed, there was no information available on the file of the Assessing Officer for verification whether any credit was introduced by those two creditors either by way of investment or loan or in any other forms. The AO while recording reasons verified that the information belonged to the assessee and it belonged to the relevant assessment year under consideration and the information was received from a reliable source i.e. the Director of Income Tax (Investigation) and thereafter he recorded satisfaction that he had reason to believe that there was a escapement of income in the case , therefore, in the circumstances it cannot be said that AO has not applied his mind. In the case of ITO vs. Comero Leasing & Financing Pvt. Ltd. ( 2014 (8) TMI 761 - ITAT DELHI ) cited by the ld. AR, the assessment was completed and the records were available with the AO before issue of notice u/s 148 of the Act, whereas in the case of assessee, the return was processed u/s 143(1) of the Act only and no scrutiny assessment was completed before issue of notice u/s 148 of the Act, thus, the ratio of the said decision is not applicable of the fact of the case of the assessee. We also agree with the contention of ld Sr DR that sufficiency or correctness of the material cannot be considered at the stage of issuing notice under section 148 of the Act as held by the Hon’ble Supreme Court in the case of the Raymond Woolen Mills Ltd Vs ITO (1997 (12) TMI 12 - SUPREME Court ).Thus, we uphold the finding of the Ld. CIT(A) in impugned order that notice issued by the AO under section 148 of the Act was in accordance to law - Decided against assessee
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