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2021 (1) TMI 79 - AT - Income TaxValidity of initiation of proceedings u/s.147 - Unexplained investment u/s. 69B - No return of income filed for current AY - Addition based on presumption - HELD THAT:- In the reasons has categorically mentioned that no return of income was filed for Assessment Year 2010- 11. It is from the perusal of return of income for Assessment Year 2009-10 and 2011-12, he has drawn a presumption that since authorized share capital has been increased from ₹ 1 lac in Assessment Year 2009-10 to ₹ 30 lac in Assessment Year 2011-12. He has no information or record regarding Assessment Year 2010-11, whether assessee had received any share capital or not or any return of income was filed or not. Even at the time of seeking approval u/s.151, it has been categorically mention that in item no.8 that ITR has not been filed. Based on this recommendation and Assessing Officer’s satisfaction, approval has been granted that it is a fit case for issuing notice u/s.148, whereas the fact of the matter is that income tax return for Assessment Year 2010-11 was duly filed in time on 12.08.2010 u/s. 139 (1) and same was available on ITD system which is also evident from the comments of the Assessing Officer filed before the Ld. CIT (A) as incorporated above. Thus, the very premise for reopening was that the assessee has not filed the return of income which has been found to be factually incorrect. Even though there was a tangible material or information coming from the investigation wing, but Assessing Officer on the said material/ information received has to apply his mind after verifying the assessment records and after due application of mind, he has to satisfy himself and reached to reason to believe that income chargeable to tax has escaped assessment. Reasons recorded is based on complete non application of mind by the Assessing Officer, therefore, same are bad in law and does not confer any jurisdiction upon the Assessing Officer to reopen the case u/s.147 - Decided in favour of assessee.
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