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2018 (12) TMI 1463 - HC - Income TaxReopening of assessment - “reasons to believe” - unexplained investment - Held that:- The reply of the assessee in this case, we notice – whether it is categorical or otherwise, is unsupported by any document or statement, containing the investments made or copies of the investment account or the shares and securities purchased and traded in. The assessee was afforded an opportunity to provide this but chose not to provide the materials, other than denying the transactions altogether. Laying the blame on the door of the AO and characterizing the re-assessment as illegal, in the opinion of this Court is not accurate. The primary task of the AO is to probe whether any income had escaped assessment when the original returns were accepted or merely framed under Section 143(1) - as it so happened in this case. AO cannot be expected to conduct a mini-investigation or assessment during the course of ascertaining whether the re-assessment notice needs to be gone further into. On the basis of these parameters of what he is expected to do, the Court is of the opinion that at least in this case the AO confined himself to the jurisdiction conferred. Furthermore, the aspects on which the re-assessment has been ordered were concededly not gone into since assessment was merely framed with an intimation under Section 143(1), which does not even amount to an assessment order in law as held by Deputy Commissioner of Income-Tax And Another Versus Zuari Estate Development And Investment Company Ltd. [2015 (8) TMI 480 - SUPREME COURT] - Decided against assessee.
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