Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (9) TMI 2098 - AT - Income TaxInitiation of proceedings u/s 147 and issue of notice u/s 148 - Information received from the CBDT that the assessee had filed a declaration under VDIS-1997 - HELD THAT;- As the reasons recorded by the AO only speak all the information received from the CBDT regarding the alleged declaration by the assessee. The reasons were supplied to the assessee on 20.03.2006. No such alleged declaration was, however, provided to the assessee. In the first round, in his remand report (APB-36) dated 2.10.2006, the AO expressed before the CIT(A) that the VDIS-1997 disclosure was needed in original, in order to verify such disclosure. The CIT(A), however, did not take any further steps in this regard. It was only when the Tribunal, vide order remanded the matter to the AO, directing him to supply the alleged VDIS declaration to the assessee, that the alleged documents, i.e., VDIS form, assessee’s affidavit, report of valuation of jewellery in the assessee’s name and copy of account for the disclosure made under VDIS 1997, saw, much belatedly, the light of day and were supplied to the assessee only on 18.02.2014, in stark contravention of the Tribunal’s direction that if within three months of receipt of the Tribunal order dated 11.04.2012, the AO was not able to supply to the assessee, the VDIS declaration, he would drop the reassessment proceedings. All this material, as such, has not been shown to have been in the possession of the AO at the time of recording of the reasons to believe escapement of income. In para 4 of the original assessment order dated 30.03.2006, the AO stated that the reasons were recorded on the basis of the information, as above, received from the CBDT, that the assessee’s contention that she had not declared any income in VDIS 1997, did not appear to be correct and that the total income was being assessed, believing the information sent by the CBDT. Hence, even as per the AO himself, none of the documents referred to by the CIT(A), i.e., the VDIS form, the assessee’s affidavit, the report of the valuation of the jewellery in the assessee’s name and the copy of account for the disallowance made under VDIS 1997, was in the possession of the AO at the time of the recording of the reasons. AO based the reopening merely on the bare information received by him from the CBDT that the assessee had filed a declaration under the VDIS 1997, in which, he (sic-she) had declared an amount of Rs.10,02,948/- on 31.12.1997, but had not paid the tax thereon and the Certificate was not issued to him (sic-her). It was this bald so called information, which was reproduced by the AO in the reasons recorded and he, without any further inquiry thereon, i.e., without any independent application of his own mind to it, formed his alleged reason to believe escapement of income. The reopening is, thus liable to be set aside and reversed on this score alone. We hold so. The reopening of the assessee’s completed assessment is cancelled on this count itself. As for the alleged VDIS declaration attributed to the assessee, the mere information, which was the only material available with the AO at the relevant time, such declaration has been held to be that of the assessee. The basis for the CIT(A) to hold so is that the assessee’s signature thereon is exactly the same as that on the assessee’s statement given before the ITO in 2006. Thus as cancelled the reopening of the assessment on the ground of it having been initiated merely on the bare information received from the CBDT, without any application of mind by the AO, any decision on this issue becomes otiose, as it, or anything else, no-longer survives. Assessee appeal is allowed.
|