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2017 (11) TMI 377 - ITAT MUMBAIReopening of assessment - information received from investigation wing of department - Held that:- What is necessary is that there must be some relevant material on which the formation of opinion is arrived at by the assessing officer. In the instant case, the A.O. formed his opinion based on the information received from the investigation wing of the department and which is the valid basis for issuing notice u/s 148 of the Act. It is not necessary for the A.O. to conduct independent enquiry and gather material to form his opinion. Material may come from within the assessment records or from outside the assessment record. But what is important is that there should be some cogent material, which suggests prima facia escapement of income chargeable to tax. Therefore, we are of the view that the A.O. has rightly formed his opinion based on the information received from the investigation wing of the department which constitutes a sufficient material for reopening of assessment and hence, the A.O. is right in reopening assessment. Therefore, we are inclined to uphold reopening of assessment and reject ground raised by the assessee. Additions towards alleged on money received by the assessee for sale of property based on third party statement - Held that:- A.O. is not correct in coming to the conclusion that on money is exchanged between the parties based on a loose sheet found in the premises of a third person. To sustain the addition, the A.O. should have conducted an independent enquiry about the value of the property and ascertain whether any under valuation is done, if so what is the correct value of the property. Further, the A.O. did not brought on record any evidence to support his contention to say that there is on-money exchanged between the parties. In the absence of proper enquiry and sufficient evidences, we find no reason to confirm addition made by the A.O towards on money. Therefore, we direct the Assessing Officer to delete addition made towards on money. Penalty levied u/s 271(1)(c) for concealment of particulars of income deleted.
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