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2021 (2) TMI 722 - AT - Income TaxReopening of assessment u/s 147 - Addition qua bank deposits and ICICI credit card payments - HELD THAT:- Assessing Officer has to act on the basis of "reasons to believe" and not on "reasons to suspect". In the instant case, the initiation of proceedings u/s. 147 of the Act are based upon no evidence and/or un-corroborative material. The Assessing Officer further failed to establish the nexus with the reasons recorded and alleged material available with the AO before initiation of proceedings and Bank Statements later received and got verified by the AO and/or produced by the Assessee. Competent authority is also required to indicate some link or nexus with the material available, while recording reasons for belief that the amount acquired is chargeable to tax has escaped the assessment, which in this case the AO failed to establish. Even the Ld. CIT(A) was absolutely unjustified in upholding the reopening of the assessment u/s. 147 of the Act, without appreciating the facts of the case, explanation submitted and evidences placed on record judiciously. In cumulative effect on the aforesaid analyzations, observations and peculiar facts and circumstances, we do not have any hesitation to hold that the proceedings u/s. 147 of the Act itself are vague, consequently the assessment order is liable to be quashed, hence ordered accordingly. Resultantly the order under challenge is set aside. Decided in favour of assessee.
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