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2012 (7) TMI 160 - AT - Income TaxRe-assessment proceedings - capital gain arising out of sale of agriculture land –value of land as on 01.04.1981 was higher than the consideration amount - no return of income was filed being the income not liable for income-tax – Held that:- AO merely received information from ITO 6(3), Jhansi that the assessee has sold the land on 05.08.2003 at the higher rate as against Government value. The AO has not verified the information - Assessing Officer had not examined the information received from the survey circle before recording his own satisfaction of escaped income and initiating reassessment proceedings - Assessing Officer had thus acted only on the basis of suspicion and it could not be said that it was based on belief that the income chargeable to tax had escaped income - Assessing Officer had to act on the basis of “reasons to believe” and not on “reasons to suspect” - Assessing Officer had failed to incorporate the material and his satisfaction for reopening the assessment and therefore the issuance of notice under section 148 of the Act for reassessment proceedings was not valid - appeal of the assessee is allowed
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