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2010 (1) TMI 943 - AT - Income TaxReopening of the assessment - contention of the assessee's counsel is that the AO has not properly recorded the reasons for reopening the assessment under s. 148(2) - Held that:- Unable to appreciate how the AO holds the opinion that the assessee has any income from the crusher unit. The reasons recorded by the AO do not disclose by what process of reasoning he holds such a belief that crusher unit of the assessee has not earned income from it. Merely saying that the assessee belatedly filed the return of income for the asst. yr. 2000-01 on 11th Aug., 2002 and he has not shown any income from the crusher unit cannot be considered to be the reason for reopening of the assessment. The AO is required to disclose the reason which led him to hold such a belief otherwise it does not confirm jurisdiction on the AO to take action u/s 147 and 148. The AO is required to record the reason for the formation of his belief to reopen the assessment before initiating the proceedings under s. 148. In the absence of the recorded reasons the conclusion is inescapable that exercise of power under s. 148 is without any jurisdiction. In the present case, the AO not having compiled with the mandatory requirement of recording the reasons before issue of notice under s. 148 as such the reassessment is invalid.
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