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2017 (2) TMI 391 - AT - Income TaxValidity of reopening of assessment - reopening based on borrowed satisfaction - Held that:- It is notable that the present proceedings u/s. 147/148 have been initiated merely on the basis of information, inferences and enquiries made by other Assessing Officer, i.e., ITO 2(1) Meerut having jurisdiction over Nikhil Gupta, that too with respect to A.Y. 2005-06. The reasons recorded contain only the reference of the inferences drawn by other ITO as communicated vide letter dated 03.03.2007 whereas the assessment order for A.Y. 2005-06, on the basis of which such inferences were drawn by the said ITO, was passed on subsequent date on 30.03.2007. The reasons recorded do not contain even the date of its recording. The AO in the instant case has acted solely on the satisfaction of other Assessing Officer without recording his own satisfaction or without having any independent material to form a belief of escapement of income. Therefore, the initiation of proceedings u/s. 147/148 are vitiated, being based on borrowed satisfaction which is not sustainable in the eye of law. It is further notable that even the material on the basis of which the other Assessing Officer drew inferences against the assessee and communicated to the assessee’s Assessing Officer, were not confronted to the assessee for rebuttal despite the assessee made specific request for the same. - Decided in favour of assessee
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