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2021 (5) TMI 22 - AT - Income TaxReopening of assessment u/s 147 - unexplained share application money - non independent application of mind by AO - borrowed satisfaction - HELD THAT:- Since the facts of the present case are similar to the facts involved in the aforesaid referred to case of M/s Indo Global Techno Trade Limited [2020 (6) TMI 375 - ITAT CHANDIGARH] so respectfully following the aforesaid referred to order dt. 15/06/2020, we are of the view that reopening by the AO in the present case was not justified. Moreover the AO himself admitted that the reopening in this case was based on the information received from Director of Income Tax (Intelligence & Criminal Investigation) Chandigarh which is evident from the observation of the Ld. CIT(A). In the present case, the AO initiated the proceedings under section 147 r.w.s 148 of the Act on the basis of the information received from Director of Income Tax (Intelligence & Criminal Investigation) Chandigarh - On a similar issue in M/S RAJSHIKHA ENTERPRISES PVT. LTD. VERSUS INCOME TAX OFFICER, WARD-15 (2) , NEW DELHI [2016 (6) TMI 1406 - ITAT DELHI] wherein held AO acted upon the report of the Investigation Wing only and on that basis initiated the proceedings for reopening the assessment by issuing the notice u/s 148 of the Act. Therefore, the reassessment proceeding was not valid. In the present case also since the AO acted upon the report of the investigation wing and on that basis initiated the proceedings for reopening the assessment by issuing the notice under section 148 of the Act therefore reassessment proceedings were not valid. In that view of the matter also the reassessment framed by the AO deserves to be quashed. In view of the aforesaid discussions legal issue raised by the assessee relating to the jurisdiction of A.O for reopening of the assessment is decided in favour of the assessee. Since we have decided the legal issue relating to the validity of the assumption of jurisdiction by the AO to reopening the assessment in favour of the assessee.
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