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2014 (5) TMI 227 - HC - Income TaxValidity of notice u/s 147/148 of the Act – Held that:- The considerable latitude given to the revenue to reopen a settled assessment is premised on the entertainment of the Assessing Officer’s opinion (“reasons to believe”), based on objective materials, which he is subsequently made aware of, which can possibly lead to conclusion that income had escaped assessment, due to non-disclosure of material facts by the assessee – Relying upon Commissioner of Income Tax v Kelvinator India Ltd [2010 (1) TMI 11 - SUPREME COURT OF INDIA] - the allegations of ownership stood rebutted through the sworn deposition of Shri Khanna and the documents, which unequivocally showed his ownership and not that of the assessee, whose connection with it was as a tenant for about two years - the assessee had a telephone installed in the premises during that period - he disclosed his address as the New Friends Colony property is but natural, because he lived there at that time – the court can only surmise that either the AO is driven by fear, or is party to what the complainant ultimately wishes- in either case, his persistence with reassessment proceedings being devoid of any legal sanction - Such insistence - one may even add obdurate insistence- is the hallmark of whimsicality and a far cry from the reasonable basis for exercise of power u/s 147/148 which the court would be bound to uphold. All the facts were revealed to the AO - He made no attempt to say that the materials revealed were false, or incomplete, there was no material, save an unsubstantiated allegation by the complainant that the assessee had acquired the property and concealed all facts relating to it, during the assessment year – thus, the AO had acted unreasonably in persisting with the reassessment notice, which also could not be said to have been based on tangible material, given the statement of Shri Khanna and lack of any tangible material supporting the allegations - Sustaining the notice and reassessment proceedings would amount to condoning what is clearly oppression and harassment – the notice for reassessment and proceedings are set aside – Decided in favour of Assessee.
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