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2017 (1) TMI 980 - AT - Income TaxValidity of reopening of assessment - reasons to believe - change of opinion - possession of assets by assessee - Held that:- There is no mention of what type of information the Department had about the assessee’s shop and another shop A/c hall along with vehicles, godowns and other assets. Neither the nature/source of information nor any specific allegation is mentioned. Mere possession of assets by itself does not constitute a belief that income of the years in question had escaped assessment. Thus, the reassessment proceedings are based on presumption and suspicion and not on the basis of any specific instance of escapement of income. Looking at the general and non-specific nature of reasons on the basis whereof the assessments have been reopened cannot be held as a valid basis for reopening. The reasons utterly lack in terms of objective, application of mind and specific instance; and, in considered view, a reasonable belief on this basis of reasons cannot be formed so as to issue notice u/s 148 of the Act. Supreme Court in the case of CIT vs Kelvinator of India Ltd,(2010 (1) TMI 11 - SUPREME COURT OF INDIA ) has held that the reasons must be specific, should have objective and a live connection with the escaped income and there should be a proper form of belief. - Decided in favour of assessee
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