2017 (5) TMI 1428 - HC - Income Tax

Reopening of assessment - reasons to believe - Held that:- In the present case, as already noticed, the reasons to believe contain not the reasons but the conclusions of the AO one after the other. There is no independent application of mind by the AO to the tangible material which forms the basis of the reasons to believe that income has escaped assessment. The conclusions of the AO are at best a reproduction of the conclusion in the investigation report. Indeed it is a 'borrowed satisfaction'.

The reasons fail to demonstrate the link between the tangible material and the formation of the reason to believe that income has escaped assessment.

The Court is satisfied no error has been committed by the ITAT in the impugned order in concluding that the initiation of the proceedings under Section 147/148 to reopen the assessments for the AYs in question does not satisfy the requirement of law. The question framed is answered in the negative, i.e., in favour of the Assessee and against the Revenue.