Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (6) TMI 333 - AT - Income TaxReopening of assessment - reasons to believe - proof of omission or failure of the assessee - Held that:- It is a necessary prerequisite that ingredients of Sec. 147 of the Act have to be fulfilled for initiating proceedings u/s.147 of the Act. At the stage of issue of notice, there has to be some relevant material on which a reasonable person could have formed a belief of escapement of income. No doubt where the original assessment was completed u/s.143(1) and where an original assessment was not done at all, the condition regarding omission or failure of the assessee and /or condition regarding change of opinion will not apply. The first condition that there should be a reason for believing escapement of income is necessary ingredient. A reading of the reasons reproduced by us above do not indicate how there could have been escapement of income in assessee’s hand where the property was settled in favour of the assessee by her husband, income from which was assessable in the hands of her husband. In my opinion, therefore the reasons cited for reopening the assessment had no legs to stand and smack of total non-application of mind. Exconsequenti the reassessments done for the impugned assessment years are set aside.- Decided in favour of assessee.
|