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2020 (12) TMI 980 - AT - Income TaxValidity of reopening of assessment u/s 147 - reason to believe v/s suspicious - notice beyond jurisdiction being without any 'reason to believe' and ' satisfaction' of AO or of the superior authority who accorded approval in a mechanical manner - HELD THAT:- It is evident from the reasons recorded that at the stage of issue notice under section 148 Assessing Officer was suspicious on the source of the cash deposits and, therefore, he wanted to investigate further to find out the actual source of the cash deposits. At the stage of issue of notice, the Assessing Officer was not sure whether income had escaped to tax or not. No notice under section 148 can be issued merely on such suspicion. There has to be a reasonable material before the Assessing Officer on the basis of which a reasonable person can make requisite belief. In the instant case, there is lack of reasonable material to form a reasonable belief that income has escaped tax. Under the circumstances, the action of the AO of reopening assessment in exercise of the power under section 148 of the Act cannot be sustained. Accordingly, we quash the re-assessment proceeding initiated in the case of the assessee.
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