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2022 (11) TMI 580 - ITAT MUMBAIReopening of assessment u/s 147 - reasons to believe - HELD THAT:- Unless the AO was to give reasons for holding that the assessee company was controlled by this person Section 92A(2)(j) could not have been invoked- and, as we have analyzed earlier as well, mere directorship of the assessee company or that person being described as “key managerial person” in the annual accounts of the company, can not, by itself, be reason enough to come to this conclusion. It also well-settled in law, to quote the words of the in Hindustan Lever”s case [2004 (2) TMI 41 - BOMBAY HIGH COURT] that “The reasons recorded by the AO cannot be supplemented by filing an affidavit or making an oral submission, otherwise, the reasons which were lacking in the material particulars would get supplemented, by the time the matter reaches to the Court, on the strength of affidavit or oral submissions advanced”. Viewed thus, the reasons recorded by the AO do not lead to the conclusion that the assessee and Biomatrix were associated enterprises, and, therefore, it could not be said that any income, on account of ALP adjustment, had escaped assessment. As also bearing in mind the entirety of the case, we hold that the reasons for reopening the assessment were unsustainable in law. The impugned reassessment proceedings must stand quashed for this short reason alone. As we have quashed the reassessment proceedings for this short reason, we see no need to deal with other issues raised in the appeal, or in the cross-objections, or on merits.
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