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2016 (6) TMI 247 - AT - Income TaxReopening of assessment - difference in income declared by the assessee and the income shown in the TDS certificate - Held that:- Only for the purpose of requirement of verification to find out any excess TDS benefit has been given to the assessee, assessment was reopened. There is nothing in the reasons to indicate that there is an escapement of income. To consider the variation in the TDS benefit to be given to the assessee, the assessment was reopened. The variation in the TDS benefit to be given does not necessarily lead to escapement of income. Mere need to verify the discrepancy does not bring matter within the scope of the cases in which reassessment proceedings can be validly initiated. There is distinction between the reasons to believe and reason to suspect while the former is good enough to hold that income has escaped assessment and to initiate suitable remedial measures in respect thereof, the latter can, at best, be the ground to verify and examine the matter further. Mere fact that matters need to be verified and examined further can never be a reason good enough to believe that income has escaped assessment and reopen the assessment proceedings, that too, the very initiation of proceedings but the facts of the instant case was devoid of merit and reassessment is bad in law. - Decided in favour of assessee
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