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2017 (5) TMI 410 - AT - Income TaxValidity of reopening of assessment - reasons to believe - direction of the Additional CIT - Held that:- If we analyse the reasons recorded by the AO, it becomes clear that he has taken a decision to issue the reassessment notice as per the direction of the Additional CIT, that he was not in possession of any material that could be considered to be lead to the belief that taxable income had escaped assessment. Re-opening of completed assessment is not a routine matter.Provisions of section 147 should be invoked in deserving cases. It is said that each re-opened case has to be decided on its own merits and reopening of assessment has to be viewed on the touchstone of the reason to believe as recorded while issuing the notice. The reasons recorded cannot be supplemented by affidavits and other material.In the case before us, the AO has stated that the assessee had claimed deduction to reduce his tax liability. Which were the deduction and how much was the tax effect is not mentioned in the reasons. Reasons recorded by the AO are of very general nature-rather they can be termed vague. Provisions of section 147 cannot be invoked on such frivolous grounds. Non application of mind is evident from the sentence that notice was issued as per the direction of the Addl. CIT. Thus, the entire re-opening proceedings stand vitiated. - Decided in favour of assessee.
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