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2015 (4) TMI 834 - HC - Income TaxReopening of assessment - as per reasons recorded the assessee has purchased bonds / debenture of ₹ 50,00,000/- during the FY 2008-09 relevant to AY 2009-10. Also the assessee has claimed high value of refund for AY 2009-10 which requires to be verified - Held that:- Considering the reasons recorded for reopening of the assessment for AY 2009-10 and even considering the affidavit in reply it appears that even as per AO investment made by the assessee in certain bonds as well as high value of refund sought by her required deeper verification. If that be so and in that case, subjective satisfaction and / or belief of the AO while reopening the assessment that the income chargeable to tax has escaped assessment has been viatiated. Even according to the respondent and in the reasons recorded for reopening of assessment, the aforesaid was required to be verified. Therefore, as such the condition precedent for reopening of the assessment under Section 147 of the Act are not satisfied. As per the catena of decisions while exercising the powers under Section 147 of the Act and while reopening of any assessment, the AO must form, on the basis of tangible material a tentative or prima facie opinion that there is an underassessment or escapement of income. As per the catena of decisions, a computed assessment cannot be reopened to make inquiry or further verification of the claim. After due verification and inquiry when AO forms prima facie opinion that income chargeable to tax has escaped assessment in that case only the reopening of assessment under Section 147 of the Act is permissible. The things which are yet to be verified, on that the AO cannot have a subjective satisfaction that income chargeable to tax has escaped assessment. That will be putting a cart before horse - Decided in favour of assessee.
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