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2014 (1) TMI 290 - AT - Income TaxValidity of reassessment proceedings under Section 147 - Held that:- The assessee has sub-let the premises of which he was not the owner - The lessee has not vacated the premises at tyhe end of the lease period for which it paid to assessee mesne profits (i.e. amount for illegal possession of property) in addition to rent - Since the rental income was taxed under the head business the compensation cannot be taxed u/s 22 - The reason recorded by the A. O for reopening the assessment are based on no tangible material - The A. O could not have reason to believe that income chargeable to tax has escaped assessment - To initiate proceedings as per the provisions of section 147 - Recording of reasons, obtaining prior approval of the competent authorities, supply of a copy of the recorded reasons to the assessee, passing an order if objections are filed by the assessee against initiation of reassessment are some of the compulsory things to be done by the AO - AO had issued notice on the basis of the reasons that were not existent - Decided in favour of assessee.
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