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2020 (7) TMI 65 - AT - Income TaxReopening of assessment u/s 147 - validity of reason to believe - reopening on the basis of information available on ITBA database - non application of mind by AO - HELD THAT:- As per reasons of reopening case of the assessee was reopened on account of cash deposits in the savings bank account amounting to ₹ 25,78,850/-, however, the AO had made the addition of ₹ 13,78,850/- meaning thereby the AO has not applied his mind and therefore, set aside the orders of the authorities below and quash reopening of assessment. Resultantly the addition made in the reassessment order would stand deleted and need not be adjudicated on merit. Aforesaid view is fortified by the following decision of Tajendra Kumar Ghai vs. ITO [2017 (6) TMI 491 - ITAT DELHI] wherein held belief of the AO should be based upon some specific and tangible material for the purpose of reopening of the assessment. The course adopted by the AO was wholly unjustified in recording the incorrect facts in the reasons for reopening of the assessment. - Decided in favour of assessee.
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