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2014 (11) TMI 477 - AT - Income TaxValidity of reopening of assessment u/s 147 - Reopening made in the absence of tangible material or fresh information - Held that:- Initiation of proceedings u/s 147 of the Act is based on the scrutiny of accounts attached with the return of income - The contention of the assessee on the issue of validity of initiation of proceedings u/s 147 of the Act is that mere reappraisal of the return of income cannot confer jurisdiction to proceed u/s 147 of the Act – following the decision in CIT vs. Orient Craft Ltd. [2013 (1) TMI 177 - DELHI HIGH COURT] - the reasons disclosed that the AO reached the belief that there was escapement of income on going through the return of income filed by the assessee after he accepted the return u/s 143(1) were without scrutiny and nothing more - This was nothing but a review of the earlier proceedings and an abuse of power by the AO - there was nothing in the reasons recorded to show that any tangible material which came to the possession of the AO subsequent to the issue of the intimation - the notice reflected an arbitrary exercise of the power conferred u/s 147 of the Act – thus, the reopening was bad in law in that case also where reopening was made in the absence of tangible material or fresh information – Decided in favour of assessee.
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