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2015 (3) TMI 635 - AT - Income TaxReopening of assessment on the basis of audit objection - CIT(A) held he reopening to be incorrect - Held that:- Comparison of audit objection with the reasons recorded by the AO would show that the AO has simply copied the audit objections in verbatim and it clearly shows that the assessing officer has not applied his mind independently. Though, the audit objection can be a source of information, yet AO has to independently apply his mind in order to arrive at the conclusion that he had reason to believe about escapement of income. The high-lighted the portion in the reasons recorded for reopening, viz., “seems to have been included” and “since the value of assets pertaining to paper and chemicals divisions could not be ascertained separately out of block of assets, no tax effect has been computed” would only show that the AO did not have any reason to believe about the escapement of income, which is the vital ingredient to uphold the reopening of assessment. One more point to be noticed is that the AO/audit party is making reference of a letter dated 11.12.2008 furnished by the assessee during the course of original assessment proceedings, meaning thereby, a reference is being made to the very same material, which was examined by him in the original assessment proceedings. It was not shown to us that the assessing officer could not have considered the above said letter during the course of original assessment proceedings. This fact also supports the case of the assessee. - Decided in favour of assessee
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