Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 444 - AT - Income TaxValidity of reopening of the assessment - original assessment u/s 143(3) - non independent application of mind by AO - Bogus purchases - CIT (A) applying 12.50% of the Purchases as alleged bogus purchase - HELD THAT:- On perusal of reasons recorded by the AO ,we find that there is no iota of observations from the AO regarding failure, on the part of assessee to fully and truly disclose all material facts necessary for assessment. On the other hand, the assessee has filed various details to prove that the information regarding purchase from certain parties was already disclosed to the AO in original assessment proceedings u/s 143 (3), where in response to query, the assesee has filed complete details about purchase. Therefore, we are of the considered view that reopening of assessment after four years from the end of relevant assessment year without any allegation in the reasons recorded or in the notice issued u/s 148, that there is failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment, is bad in law and liable to be quashed. Borrowed satisfaction by AO - The reopening of assessment cannot be held to be valid, even on this ground ,because if you go through reasons recorded by the AO, it is very clear that the AO has not applied his mind to the information received by him from the DGIT(Inv.). AO has merely issued reopening notice, on the basis of information received from the DGIT(Inv.). This is clearly breach of the settled position of law that reopening notice has to be issued by the AO on his own satisfaction and not on borrowed satisfaction. Case followed M/S. SHODIMAN INVESTMENTS PVT. LTD., [2018 (4) TMI 1287 - BOMBAY HIGH COURT] - Decided in favour of assessee.
|