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2019 (3) TMI 1670 - AT - Income TaxReopening of assessment u/s 147 - as argued reasons recorded are based on borrowed satisfaction without independent application of mind - Non independent application of mind by AO - HELD THAT:- Examining validity of extant reopening strictly on basis of reasons recorded which are approved by PCIT and are communicated to assessee , we find it very difficult to fathom and understand what was in mind of AO so that he has reopened the present case . As evident from reasons which are reproduced elsewhere in this order it would be clear like broad day light that reasons are recorded without independent application of mind on part of AO who has recorded reasons on basis of rumor and suspicion only. When we read reasons line by line we find that reasons are simply and solely based on undescribed and un-narrated letter of ITO Ward 11(3) New Delhi like a borrowed satisfaction. Phrases like “on going through the list of accommodation entries provider…” and “the assessee has introduced his own money which has not been offered for taxation” clearly tells the tale that reasons are recorded without any tangible material and without any live nexus. Reasons fail on following significant aspects like wrong mentioning of return filing status in reasons format, no description at all about composition of income escapement alleged to be of ₹ 2.93 crores which amount is also not correct , mechanical and ritualistic approval of PCIT who has also not bothered to examine reasons independently thus reducing the approval to a empty ritual. AO has not even cared and taken pains to describe the composition of income escapement of ₹ 2.93 crores which has fractured the entire reopening and reasons are based on the dictate and/or satisfaction of some other authority that is ITO Ward 11(3) New Delhi which is not countered by Ld DR and Ld CIT(A) in impugned order. On basis of aforesaid discussions and respectfully following the precedents, as aforesaid, we accept both the pleas raised by Ld AR and reject the arguments of Ld DR and hold that Ld CIT(A) wrongly approved the reopening action of AO and thus reverse the findings of Ld CIT(A) on these count and accordingly hold that AO wrongly reopened the case of assessee u/s 147 on basis of mechanical reasons simply based on borrowed satisfaction of ITO Ward 11(3) New Delhi which are approved in perfunctory manner by PCIT and gravely violated principle of natural justice in reopening proceedings, and thus quash the reassessment and cancel the orders of the authorities below. Since we have quashed the reassessment in the case of the assessee, thus grounds on merits of the case has become academic - Decided in favour of assessee.
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