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2014 (12) TMI 95 - AT - Income TaxValidity of notice for reopening of assessment u/s 147/148 – Proper application of mind by AO or not for issuing notice - Held that:- The AO has not made any addition with regard to donations as has been mentioned in the reasons recorded by the AO for issuance of notice u/s 148 of the Act - the AO has made addition of ₹ 26,10,000 in the reassessment order with regard to unsecured loans shown by the assessee in the balance sheet but in the reasons recorded by the AO, the issue of unsecured loan has not been mentioned - the AO issued notice u/s 148 of the Act on the basis of same material which was before him during the assessment proceedings and the AO made additions on account of unsecured loans which has not been mentioned in the reasons recorded for issuance of notice u/s 148 of the Act - the AO has recorded his satisfaction without any verification and examination of the information received and mentioned that he has reason to believe that the income chargeable to tax for AY 2003-04 has escaped assessment - the AO issued notice u/s 148 of the Act without application of mind to the information received from the Director of Investigation, New Delhi and the AO has not made any addition in this regard in the reassessment order but the addition has been made on account of unsecured loan which was not mentioned in the reasons recorded – revenue has not disputed the fact that the detail of donors was submitted before the AO during original assessment proceedings - the AO has his own jurisdiction without any basis which was not valid and bad in law, hence, notice u/s 148 of the Act and all subsequent proceedings are not sustainable and the notice u/s 148 is set aside – Decided in favour of assesse.
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