Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 1882 - AT - Income TaxReopening of assessment - assessee had claimed loss by trading in its own shares - CIT(A) quashed reassessment proceedings - Held that:- Reassessment proceeding was initiated for re-appraisal of the facts already on record and this was clearly a case of mere change of opinion. No fresh tangible material came to Assessing Officer’s possession to justify the initiation of reassessment proceedings and the details regarding amalgamation were already on record and the quantification of long term capital gains had duly been considered by him in the original assessment. Further, it is well settled law that there should be live nexus between reasons recorded and formation of belief. In the present case the Assessing Officer formed the belief regarding escapement of income on the ground that assessee had claimed loss by trading in its own shares which was factually incorrect. Therefore, in view of the decision of the Hon’ble Supreme Court in the case of Kelvinator of India Limited reported in [2010 (1) TMI 11 - SUPREME COURT OF INDIA ], the reassessment proceedings were bad in law, which rightly cancelled by the ld. CIT(Appeals). We accordingly confirm the order of ld. CIT(Appeals) on these observations. - Decided in favour of assessee.
|