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2018 (6) TMI 1044 - AT - Income TaxValidity of reopening of the assessments u/s 147 for AY 2004-05 - validity of reason to believe - Held that:- Validity of the reassessment proceedings shall be determined with reference to reasons recorded. The assessee declared all the particulars and details in the original return of income; the AO was satisfied with the same and accepted u/s 143(1) - AO reached the belief that there was escapement of income ‘on going through the return of income’ filed by the assessee after he accepted the return u/s 143(1) without scrutiny, and nothing more. Thus, no tangible material was available with the AO, except details already mentioned in the original return of income - this is nothing but a review of earlier proceedings by the AO which is not permissible under law. There is no whisper in the reasons recorded, of any tangible material which came to the possession of the AO subsequent to the issue of intimation. Therefore, the reopening of the assessment is wholly invalid and bad in law - thus relying upon decision of the Delhi High Court in the case of CIT vs. Orient Craft Ltd. [2013 (1) TMI 177 - DELHI HIGH COURT] - Decided in favor of assessee. Validity of reopening of the assessments u/s 147 for AY 2005-06 - Held that:- The reasons recorded for reopening of the assessment, the AO has not mentioned the necessary ingredients for reopening of the assessment because AO has not mentioned in the reasons that he has reason to believe that income chargeable to tax as escaped assessment - thus the reopening of the assessment is invalid and bad in law - thus following reasons of decision for AY 2004-05, we set aside the order of the authorities below and quash the reopening of the assessment u/s 147/148 - Decided in favor of assessee.
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