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2017 (12) TMI 870 - AT - Income TaxReopening of assessment - reopening on the basis of the letter received by him from ACIT, Circle 2(3), Hyderabad - undisclosed investment - Held that:- AO has not brought on record, any evidence as to how and when the assessee has made payment of any cash for the purchase of the villa. The AO has unilaterally apportioned the alleged cash payment equally amongst the three A.Ys. Such a procedure is not envisaged under the law. The AO is required to bring on record, the quantum of investment and the mode of investment made during the relevant previous year before making any addition to the returned income of the assessee. No such evidence has been brought on record by the AO The reasons recorded should be self-explanatory and should not keep the assessee guessing as the reasons provide the link between the conclusions and the evidence. The AO, in the event of challenge to the reasons, must be able to justify based on the material available on record and he must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that A.Y, so as to establish the vital link between the reasons and evidence. That vital link is the safeguard against arbitrary reopening of the concluded assessment. The reasons recorded by the AO cannot be supplemented by filing an affidavit or making an oral submission, otherwise, the reasons which were lacking in the material particulars would get supplemented, by the time the matter reaches the Court, on the strength of the affidavit or oral submissions advanced”. Thus, the re-assessment proceedings in the case before us are not sustainable. - Decided against revenue.
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