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2023 (11) TMI 1232 - HC - Income TaxValidity of reopening of assessment - reasons to believe OR reason to suspect - Information was received from ITO (I & CI), 1(1), Mumbai that the assessee has entered in Development Agreement of property project of Pune - According to Petitioner, it is nothing but a fishing inquiry that the Assessing Officer (“AO”) wants to make - ascertaining or verifying incidence of income tax or any other income accruing to the party - HELD THAT:- In Darpan Chandliya v. Income Tax Officer [2023 (9) TMI 1041 - BOMBAY HIGH COURT] a similar situation arose where also the AO had noted that he is seeking some information to examine the case of assessee. The Court held that, that cannot be stated to be founded on the belief that any income which is chargable to tax has escaped assessment. Just because some information has been received does not entitle Respondent to reopen assessment. The reasons must be founded on the satisfaction of the AO that income chargeable to tax has escaped assessment. Once that is not to be found, then the impugned notice cannot be sustained. The Court said, “what is found is that there are no reasons to believe but, only reasons to suspect. Hence, reopening of assessment is not satisfactory.” In the circumstances, we are satisfied that there are no reasons to believe but only reasons to suspect escapement of income. Petition allowed in favour of assessee.
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