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2017 (9) TMI 1782 - AT - Income TaxReopening of assessment - addition u/s 69 - tangible material having live link with the escapement of the income - AO on the basis of information received from the Directorate of Income-tax (Investigation), New Delhi reopened the assessment u/s 147 to investigate the source of investment made by the assessee in assets leased to it - HELD THAT:- For the reassessment proceedings cannot be initiated to make further enquiries is concerned, we find the Hon'ble Bombay High Court in the case of Nivi Trading Ltd. [2015 (4) TMI 411 - BOMBAY HIGH COURT] has held that where the assessee had shown gift of shares to a company, merely because the assessee had been called upon by the Assessing Officer for verification of value of shares in terms of section 47(iii), it would not enable the Revenue to resort to section 147 of the I.T. Act. We find the Hon'ble Gujarat High Court in the case of Krupesh Ghanshyambhai Thakkar [2016 (11) TMI 1395 - GUJARAT HIGH COURT] has held that the reassessment cannot be initiated for the purposes of deep verification As under the guise of reopening of the assessment, AO wants to have a roving inquiry; as observed hereinabove. Even as per the Assessing Officer in the reasons recorded has specifically mentioned that for the purpose of verification/ deep verification of the claim, it is necessary to reopen the assessment. Under the circumstances, it cannot be said that the Assessing Officer had any tangible material to form an opinion that the income chargeable to tax has escaped the assessment. Under the circumstances, the impugned action of reopening of the assessment in exercise of power under Section 148 for the reasons recorded hereinabove cannot be sustained. Reassessment proceedings cannot be initiated for the purposes of making verification in absence of any valuable material available with the Assessing Officer to show that the income has escaped assessment. - Decided in favour of assessee.
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