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2015 (1) TMI 1364 - AT - Income TaxValidity of reopening of assessment - reasons to believe - justification that the assessee purchased shares of other companies - Held that:- Admittedly, there is no material on record to suggest that the assessee purchased and sold shares of Esasr Oil, Jai Corporation, etc. The figure of ₹ 4,18,437/- is not tallying with any material on record which amply prove that the AO had mechanically issued notice under section 148 of the Act. Similar mistake was committed by the CIT(A) by reproducing the grounds of appeal of some other assessee while passing the order, which amply shows that both the authorities below had not applied their minds to the facts of the case. Since the AO issued notice without proper recording of his satisfaction that he has reason to believe that income chargeable to tax had escaped assessment, it is of the firm view that reopening of assessment is bad in law - Decided in favour of assessee.
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