Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 154 - GUJARAT HIGH COURTReopening of assessment u/s 147 - Reopening at insistence of the audit department - HELD THAT:- In the present case, from the audit para it emerges that upon the audit department bringing the above two issues to the notice of the AO, the AO did not agree with the objections raised by the audit department and expressed the opinion that the original assessment was not erroneous. It appears that on the insistence of the audit department, which found that the reply of the Assessing Officer was not tenable, AO has reopened the assessment. In the aforesaid premises, it is evident that the AO did not form the requisite belief that income chargeable to tax has escaped assessment, but the reasons have been recorded on the basis of borrowed satisfaction of the audit department and not that of the Assessing Officer. Basic requirement for assumption of jurisdiction u/s 147 namely the formation of belief on the part of the Assessing Officer that income chargeable to tax has escaped assessment, is not satisfied in the present case. The assumption of jurisdiction by the AO u/s 147 of the Act is, therefore, invalid. The impugned notice under section 148 of the Act, therefore, cannot be sustained. Petition succeeds and is, accordingly, allowed.
|