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2018 (7) TMI 1617 - AT - Income TaxReopening of assessment - addition u/s 68 - non independent application of mind by AO - borrowed knowledge - Held that:- AO has merely relied on the report of the investigation wing but it is apparent that he has not applied his mind to the materials which were before him. In our view, without forming a prima facie opinion only on the basis of the report of the Investigation Wing of the Income Tax Department, it was not legal for the AO to have simply concluded that he has reason to believe that income chargeable to tax has escaped assessment. Unless the basic jurisdictional requirement is satisfied, a post mortem exercise of analysing materials produced subsequent to the reopening will not rescue an inherently defective reopening order from invalidity. In the circumstances and respectfully following the judgment of the Hon’ble High Court of Delhi in the case of Pr. Commissioner of Income Tax-4 vs. G&G Pharma India Ltd. (2015 (10) TMI 754 - DELHI HIGH COURT) we hold that the reopening of the case of the assessee for the assessment year is bad in law. In the circumstances, we quash the reassessment proceedings. - decided in favour of assessee
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