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2017 (1) TMI 1192 - HC - Income TaxReopening of assessment - addition made in respect of on-money received - Held that - From the reasons recorded to reopen the assessment for A.Y 2006-2007 it appears that the same is sought to be reopened by the Assessing Officer on the basis of observations made by Assessing Officer while framing the assessment for A.Y 2007-2008 with respect to the flats sold during the year under consideration wherein it was found that the assessee had received on-money with respect to the flats sold and in the A.Y 2007-2008 and therefore the Assessing Officer while issuing the Notice for reopening has presumed and assumed that with respect to the flats sold in AY 2006-2007 the assessee must have received on-money. From the record available it appears that there is no further tangible material available with the Assessing Officer to form a belief that the assessee had received on-money with respect to the flats sold in A.Y 2006-2007 and/or had received any on-money in the AY 2006-2007. With respect to addition made in respect of on-money received in A.Y 2007-2008 the same has been subsequently set-aside by the learned CIT A against which an appeal was preferred which has been dismissed on the ground of low tax effect. Considering the aforesaid facts and circumstances of the case and solely on the observations made by another Assessing Officer with respect to the subsequent assessment years ie. 2007-2008 the reopening was not permissible more particularly in absence of any other tangible material available with the Assessing Officer that in the year 2006-2007 the assessee had received any on-money. Under the circumstances it was not open for the Assessing Officer to re-open the assessment for A.Y 2006-2007 that too beyond the period of four years and more particularly when the original assessment was done under Section 143 (3) of the I.T Act. - Decided in favour of assessee
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