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2008 (8) TMI 401 - ITAT DELHI-FValidity of reopening of assessment u/s 147 - on mere suspicion - AO not recorded his independent satisfaction - HELD THAT:- As could be noticed from the reasons recorded by the learned Asstt. CIT, the reopening of assessment was based on mere suspicion and the use of the expression "presumably, the sum might have been taken back in cash........." clearly shows that the AO has not made any effort to satisfy himself as to whether the information received from the office of the Director General of IT (Inv.) has some basis or not and thus it is to be held that the reassessment proceedings are initiated in a mechanical manner on vague grounds. In the light of the decision in the case of Atul Jain [2007 (5) TMI 184 - DELHI HIGH COURT], as well as the decision of CIT vs. Smt. Paramjit Kaur [2007 (8) TMI 323 - PUNJAB AND HARYANA HIGH COURT], we are of the view that the reopening of assessment, based on mere suspicion, is invalid in law and therefore liable to be quashed. In view of our conclusion that the reopening is bad in law, it is not necessary for us to go into the other issues on merits, urged by the Revenue. In the result the appeals filed by the Revenue are treated as dismissed and the cross-objections filed by the assessee are allowed.
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