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2014 (6) TMI 188 - HC - Income TaxValidity of notice for reopening of assessment – Reason to believe - Held that:- Relying upon Gujarat Fluorochemicals Ltd. v. Asst. CIT [2013 (8) TMI 287 - GUJARAT HIGH COURT] – the noting made by the AO that the AO did not hold any belief that income had escaped assessment – Examination of noting clearly and unequivocally reveals that the AO had not only not accepted the objections raised by the audit party but after deliberating over the issue raised, preferred to adhere to her earlier version that the income which never materialised cannot be taxed. Remedial actions indicated could not be said to be satisfying the requirement of having held the belief - while issuing notice for reopening, the AO had not formed any independent belief that the income had escaped assessment - the AO has issued notice not on forming her own belief, but on compulsion asserted – thus, the assumption of jurisdiction on the part of the AO itself is not sustainable - any action of reopening solely at the behest of objection raised by audit party without any independent belief while recording the reasons would surely make the very assumption of jurisdiction vulnerable - the petitions is to be allowed on the ground of assumption of jurisdiction for issuance of notice of reassessment being contrary to law and unsustainable - Decided in favour of Assessee.
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