Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (11) TMI 1596 - AT - Income TaxReopening of assessment - reopening of relying on the information sent by the search wing and without receipt of any seized material relevant to the assessee - Held that:- We hold that at the stage of issue of notice for reopening, the only question which is to be considered is whether there was relevant material on which a reasonable person could, have formed a requisite belief. However, whether the materials would conclusively prove the escapement is not the concern at that stage. This is so because the formation of belief by the Assessing Officer is within the realm of subjective satisfaction. Since in the present case, the AO had the tangible material from the Investigation Wing in which it was categorically mentioned that the assessee had paid ‘on money’of ₹ 1 crore to Hiranandani Group and moreover no scrutiny assessment was carried out prior to reopening inititated by the AO. Therefore, while relying upon the proposition laid down by the Hon’ble Supreme Court in the case of ACIT vrs. Rajesh Jhaveri Stock Brokers (P) Ltd. (2007 (5) TMI 197 - SUPREME Court), we dismiss this ground raised by the assessee and uphold the order of Ld. CIT(A). Additions made as relied upon the statement of the directors of Hiranandani Group admitting the receipt of cash money from the assessee - denial of natural justice - Held that:- Not providing copies of the statement of the Director of the Hiranandani Group to the assessee before making additions and not providing opportunity of cross examination to the assessee itself amounts to infringement of ‘legal rights’ of the assessee which caused prejudice to the rights in this context. In view the interest of justice, we set aside the order of Ld. CIT(A) and remit the matter back to the file of AO with a direction to provide copies of statement of directors/promoters of Hiranandani Group and to provide opportunity of cross examination to the assessee and thereafter pass afresh order assessment. Appeal filed by the assessee are allowed for statistical purposes.
|