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2017 (6) TMI 587 - AT - Income TaxValidity of proceedings initiated u/s. 147 - reasons to believe - Held that:- At the time of recording of reasons the AO, since, had no tangible material before him to form a belief that income has escaped assessment, the reopening of assessment on mere suspicion, rumor and gossip is invalid. The AO in case of a particular assessee while initiating action u/s. 147 must form his own belief on the basis of materials/information in his possession and not at the behest of another officer. In the facts of the present case, we are convinced that at the time of recording of reasons there was no material before the AO to form a belief that income has escaped assessment. Though, the AO has referred to the information received from the AO at Madras, however, there is nothing available in the assessment record to throw light on the exact nature of information received from the AO, Madras and the mode of communication of such reasons. We are of the considered opinion that the formation of belief by the AO relating to escapement of income being not on the basis of any tangible material available before him at the time of recording of reasons, the initiation of proceedings u/s. 147 is invalid and without jurisdiction, hence, deserves to be annulled.- Decided in favour of assessee. Refund of excess appeal fees paid by the assessee at the time of filing of appeal before the CIT(A) - Held that:- As per section 246A of the Act, any appeal filed by the assessee should be accompanied by appeal fees of Rs. .1000/-. Undisputedly, the assessee has paid appeal fees of Rs. .10,000/- while filing the appeals before the CIT(A) challenging the assessment orders. The CIT(A) has not disputed the aforesaid factual position. Therefore, when there is no dispute to the fact that the assessee has paid appeal fees in excess of what it was required to pay under the statutory provisions, such excess appeal fees has to be refunded to the assessee. We direct the AO to verify this aspect and refund the excess appeal fees paid by the assessee following due process of law.- Decided in favour of assessee.
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