Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (5) TMI 738 - ITAT MUMBAIValidity of re-opening of assessment - information received through AIR - Transaction with Standard Chartered Bank, Payment for purchase of bonds issued by RBI and Purchase of immovable property - non independent application of mind - Held that:- AO has reopened the assessment to verify the three transactions mentioned above. As rightly pointed out by learned AR, the Assessing Officer has received information about the transactions and he did not refer to any material from which he drew the belief that there was escapement of income. The question as to whether or not there was escapement of income could have been answered by the AO only after making fishing enquiries. Hence there is merit in the contentions of the Ld A.R that the information received by the AO merely gave reason to suspect that there was escapement of income. The reopening of assessment on the basis of suspicion is not valid as held by Hon'ble Gujarat High Court in the case of Bakulbhai Ramanlal Patel Vs. ITO (2011 (3) TMI 1576 - GUJARAT HIGH COURT). Admittedly, Assessing Officer did not make any additions in respect of above said three issues meaning thereby, the Assessing Officer was satisfied during the course of reassessment proceedings that the above said three transactions does not warrant any additions. Since no addition was made in respect of issues from which the Assessing Officer drew belief that there was escapement of income, it is not open for him to make any other addition - Decided in favour of assessee
|