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2020 (2) TMI 559 - ITAT PUNEReopening of assessment u/s 147 - addition made in respect of section 2(22)(e) - HELD THAT:- The basis of re-assessment proceedings is that the Assessing Officer should have the reason to believe that some income has escaped assessment, that belief should lead him to reach a logical conclusion i.e. in the final assessment he should bring those incomes which had earlier escaped from tax, now they should be taxed. In this case, the Assessing Officer fails to do so. None of the issues for which reopening was initiated, no additions are made in respect of them. Taking guidance from the decisions of jurisdictional High Court in CIT Vs. Smt. Maniben Valji Shah [2005 (2) TMI 35 - BOMBAY HIGH COURT] and CIT Vs. Jet Airways (I) Ltd. [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] firstly the basic criteria of section 147/148 of the Act is not fulfilled as evident from the action of the Assessing Officer; secondly, there is no rational and intelligible nexus between the reasons and the belief. In such circumstances, we are of the considered view that the action of Assessing Officer in resorting to reopening of assessment and framing the assessment u/s 143(3) r.w.s. 147 of the Act is not valid in law and we accordingly, quash the re-assessment order. Appeals of assessee are allowed.
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