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2018 (7) TMI 230 - AT - Income TaxReopening of assessment - addition u/s. 69C as alleged unexplained expenditure - non independent application of mind by AO - Borrowed knowledge - Held that:- Mere information received from DDIT(Inv) cannot constitute valid reasons for initiating reassessment proceedings in the absence of anything to show that A.O. had independently applied his mind to arrive at a belief that the income had escaped assessment. AO has acted mechanically and without any independent application of mind. It is also evident that while alleging cash payment in dispute it is not even known or stated on which date and on what basis such sums was allegedly paid by assessee; the reasons recorded are therefore vague, highly non specific and reflect complete non-application of mind. There is no live link or direct nexus between alleged material and, inference. It is a case of investigation in the garb of action u/s 148 of the Act on the basis that proceedings have been initiated on the basis of no material much less any tangible and, relevant material and as such reasons record do not constitute valid reason to believe for initiating proceedings u/s 147 of the Act. - Decided in favour of assessee.
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