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2017 (9) TMI 238 - AT - Income TaxValidity of Reopening of assessment u/s 148 - reassessment on basis of audit objection raised by revenue audit party- "reasons recorded" alone is foundational fact to be examined while evaluating validity of reopening u/s 147 - without application of mind by AO - Held that:- There is no application of mind of the Assessing Officer from the materials already available on record and he has blindly gone by the observation of the audit party which cannot be reckoned as conclusive finding or opinion but mere suggestion. The Assessing Officer after having receiving the information in form of audit objection has to apply his mind independently from the records as to whether such an objection and suggestion by the audit party is actually tenable or not. Reopening in the present case is bad in law, firstly, no tangible material has come on record having live link nexus with the income alleged to have escaped assessment; and secondly, the issue which has been raised in the ‘reasons recorded’ was already on record and duly considered by the AO in the course of original assessment proceedings, which amounts to “change of opinion”, impermissible in law. Accordingly, the assessment order passed in pursuance of such “reasons” is liable to be quashed. - Decided in favour of assessee.
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