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2015 (8) TMI 49 - AT - Income TaxValidity of initiation of proceeding u/s 147 - Held that:- From the reasons recorded, it is very much clear that AO was not having in his possession any fresh tangible material which could demonstrate escapement of income. Only on revisiting/reviewing the materials/informations already available on record at the time of original assessment and on reappraisal of the same, AO has formed belief that income has escaped assessment. Therefore, reopening of assessment on re-appreciation or reappraisal of the materials/informations available on record on the basis of which original assessment was completed is legally invalid as it amounts to change of opinion. See M/s. Gayatri Sugars Ltd. Versus Asst. Commissioner of Income-tax [2014 (12) TMI 3 - ITAT HYDERABAD ] On perusal of the materials on record including the reasons recorded as well as observations made by ld. CIT(A), it is very much evident that assessment was reopened u/s 147 of the Act purely on the basis of objections raised by the internal audit party. AO has merely followed the dictat of the internal audit party without independently applying his mind to know whether income has escaped assessment. In our view, for this reason initiation of proceeding u/s 147 of the Act is incorrect. See DCIT Vs. Lee Pharma Pvt. Ltd.(2012 (11) TMI 310 - ITAT, HYDERABAD ). - Decided in favour of assessee. M/s. Gayatri Sugars Ltd. Versus Asst. Commissioner of Income-tax [2014 (12) TMI 3 - ITAT HYDERABAD ]
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