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2018 (8) TMI 650 - AT - Income TaxReassessment u/s 147 - recording of reason to believe u/s 148 - sale of property - Held that:- In our view, the Assessing Officer is duly ceased of the information in the form of the sale deed registered with the Sub-registrar, Dholpur, Rajasthan and the assessee’s share in the sale deed is also determined to the extent of 1/5 share. There is, therefore, a definitive and a live link between the information in possession of the Assessing Officer and formation of believe that the income in the form of capital gain on the sale of the property has escaped assessment. Merely because the quantum of income which is finally determined is lower than the amount specified in the reasons, the same cannot be the basis for challenging the initiation of reassessment proceedings U/s 147 of the Act. Mechanical approval by Additional CIT - Held that:- The said approval cannot be said to have been granted mechanically, rather in our view, the ld. Additional CIT has applied his mind before granting the approval to the Assessing Officer to initiate the proceedings U/s 147 of the Act. The decisions relied by the ld. AR are distinguishable on facts and does not support the case of the assessee. Even though the proceedings have been validly initiated by issuance of notice U/s 148 of the Act, however, giving the fact that the reasons so recorded have not been supplied to the assessee even though the same were being specifically asked during course of reassessment proceeding, a fact which remain undisputed before us, the reassessment proceedings have become vitiated and liable to be set aside respectfully following the decisions of the Hon’ble Supreme Court and other High Courts referred supra. Decided in favor of assessee.
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