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2021 (11) TMI 379 - ITAT MUMBAIReopening of assessment u/s 147 - Validity of reasons to believe - Reliance on information received from investigation wing - HELD THAT:- Reasons have been recorded in a mechanical manner without ascertaining as to how the assessee has obtained fictitious losses through client code modification. The reasons are mere repetition of the information received from investigation wing without establishing the linkage of the assessee with the broker who manipulated the transactions. The details/nature of transactions which would, prima-facie, lead to reasonable belief of escapement of income has not been specified in the recorded reasons. No linkage of the assessee has been established with the information received from investigation wing and the reopening is based merely on borrowed satisfaction. The reasons were mere reasons to suspect and not the reasons to believe that the income had escaped assessment. This being the case, the reopening could not be held to be valid in the eyes of law since the jurisdictional requirements were not fulfilled. We order so. The assessment framed by Ld. AO is bad in law and accordingly, quashed.
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