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2016 (1) TMI 1274 - AT - Income TaxReopening of assessment - reasons to believe - Held that:- Reopening in the case of assessee was done on the identical information and in respect of the same list of beneficiaries wherein the name of the assessee as well as name of Mr. Hirachand Kanuga appeared as beneficiaries. Even we find that the Tribunal has discussed about the satisfaction recorded by the Additional Commissioner of Income Tax on the reasons recorded by the AO wherein the Tribunal has reproduced the letter dated 26.03.10 of the Additional Commissioner of Income Tax showing that the permission was granted by the Additional Commissioner in respect of 22 assessees wherein the name of the assessee and his HUF appeared at Sl. Nos.1 & 2 in the said list and whereas the name of Hirachand Kanuga HUF and Mr. Hirachand Kanuga in individual capacity appeared at Sl. Nos.3 & 4. The Tribunal has given a categorical finding that the Additional Commissioner has simply sanctioned the proposal of initiating the proceedings under section 147 and he has nowhere recorded his satisfaction on the reasons recorded for reopening of the assessment. Further, the Tribunal has also discussed about the merits of the reopening of the assessment and formation of belief by the AO for the said reopening and thereafter relying upon the decision of the Hon’ble Delhi High Court in the case of “Sarthak Securities Co. Pvt. Ltd.” [2010 (10) TMI 92 - DELHI HIGH COURT] as held that the reopening was bad in law as from the perusal of the reasons recorded and the order of rejection of objections, the names of the companies were available with the authority and their existence was not disputed. The assessee in its objections had stated that the companies had bank accounts and payments were made to the assessee through banking channel. The identity of the companies was not disputed. Under these circumstances, the initiation of proceedings under section 147 and issuance of notice under section 148 of the Act were to be quashed. - Decided in favour of assessee.
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