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2018 (3) TMI 1767 - AT - Income TaxReopening of assessment u/s 147 - Cash paid for admission in the course of MBBS - whether action has been taken mechanically on the basis of information received from investigation wing, and, not on an independent application of mind? - HELD THAT:- It is apparent from the fact that according to the AO, Investigation Wing has informed that assessee has paid cash of ₹ 21,00,000/- for admission in the course of MBBS to Santosh Medical College, Ghaziabad. It has been further noted that the assessee has not filed return of income for the relevant assessment year i.e. Assessment year 2007-08 and, AO has invoked section 148 of the Act to verify the source of cash paid of ₹ 21,00,000/-. Thus, the AO has acted mechanically and without any independent application of mind While alleging cash payment of ₹ 21 lacs it is not even known or stated on which date and on what basis such sums was allegedly paid by assessee; the reasons recorded are therefore vague, highly non specific and reflect complete non-application of mind. That reasons recorded are 'reason to suspect' and, is a mere attempt to carry out fishing and roving expedition. In the absence of specific and incriminating material much less tangible and, relevant material to form even prime facie belief that there was alleged payment of ₹ 21,00,000/- is also apparent from the fact that the alleged document found and seized during the course of search/survey action u/s 132/133A of the Act does not reflect any figure of ₹ 21 lacs and in the absence of any independent enquiry or examination of facts on record or noticing the content of alleged documents in the reasons recorded and, reasons being silent as to the specific facts, the vague allegation shows that action has been taken mechanically on the basis of alleged report of investigation wing, and, not on independent application of mind and therefore on this ground too, the proceedings are without jurisdiction. There is no live link or direct nexus between alleged material and, inference. It is a case of investigation in the garb of action u/s 148 of the Act on the basis that proceedings have been initiated on the basis of no material much less any tangible and, relevant material and as such reasons record do not constitute valid reason to believe for initiating proceedings u/s 147 of the Act. See M/S. KELVINATOR OF INDIA LIMITED [2010 (1) TMI 11 - SUPREME COURT] - Thus proceedings initiated by invoking the provisions of section 147 of the Act by the AO and upheld by the Ld. CIT(A) are nonest in law and without jurisdiction - Decided in favour of assessee.
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