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2017 (10) TMI 1097 - AT - Income TaxValidity of reopening under section 147 - reasons to believe - Bogus gifts received - Held that:- In the assessment proceedings of M/s Ashok Mahindru & Sons, which is the material relied upon by the Assessing Officer in his ‘reasons recorded’, there is no reference or whisper about the donor in the case of the assessee, i.e., Shri Rajiv Gupta or there is any mention about the assessee. Hence we are of the considered opinion that in the present case there is no rational and intelligible nexus between the said material as referred by the Assessing Officer in the ‘reasons recorded’ for the formation of ‘reason to believe’ for income escaping assessment. It appears that reopening has been done simply as a pretence to make further enquiry about the genuineness of the gift and such pretence for making roving and fishing enquiry cannot clothe the Assessing Officer with the jurisdiction to reopen assessment in terms of section 147. Thus, we hold that there is no live-link nexus between the material referred to by the Assessing Officer and the formation of his belief that simply because gift has been received from an un-related person, it automatically becomes bogus or non-genuine. Hence, we are of the opinion that the ‘reasons’ as recorded by the Assessing Officer cannot be reckoned as ‘reason to believe’ that the gift received by the assessee is an income chargeable to tax which has escaped assessment. - Decided in favour of assessee.
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