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2016 (5) TMI 92 - AT - Income TaxReopening of assessment - receipt of gifts unexplained - Held that:- it is clear that information was received by the Assessing Officer from the Deputy Commissioner of Income-tax, CC-V, Ludhiana, dated March 5, 2007, which did not reveal any fact of escapement of any income. It refers only the decision of the hon'ble Punjab and Haryana High Court in the case of Lall Chand Kalra (1981 (1) TMI 275 - PUNJAB & HARYANA HIGH COURT ). This did not say that the assessee received any bogus gift. The reasons did not satisfy the requirements of section 147 of the Income-tax Act. There is no reference to any document or statement except reference to the judgment of the High Court. The same could not be regarded as a material or evidence that prima facie showed or established nexus or link which disclosed escapement of income in the case of the assessee. There is nothing in the reasons recorded to show any tangible material had come into possession of the Assessing Officer subsequent to the issue of intimation. A valid reopening of assessment has to be based only on tangible material to justify the conclusion that there is escapement of income. The Assessing Officer recorded wrong facts in the reasons as mentioned above and, thus, has not applied his mind before forming belief of escapement of income. The information dated March 5, 2007, was not a pointer and did not indicate the escapement of income. The Assessing Officer did not examine the information which was nothing and did not speak of escapement of income before recording his own satisfaction of escaped income initiating the reassessment proceedings. Thus, the Assessing Officer acted only on the basis of suspicion and the same could not be said that it was based on belief that income charged to tax has escaped assessment. - Decided in favour of assessee
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