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2021 (8) TMI 161 - AT - Income TaxReopening of assessment u/s 147 - certain information stated to be received from Sales Tax Department - HELD THAT:- A plain reading of reasons provided would overtly show that the AO merely wanted to make enquiry to find out the correctness of so-called information claimed to have been received from the Sales Tax Department and quantify the amount of escaped income at a later stage. The bona fide 'belief' towards escapement of income which is a mandatory pre-requisite is clearly absent in the present case. In the absence of such belief, the entire action of the AO is a complete non-starter and thus requires to be struck down. There are long line of judicial precedents delivered both by the Jurisdictional High Court as well as other High Courts for the proposition that re-assessment notice for mere verification or for conducting a fishing enquiry is not permissible in law notwithstanding that the return of income was not subjected the scrutiny under s. 143(3) of the Act. The action of the AO for invoking jurisdiction is thus inconsistent with the mandate of law and therefore requires to be quashed. It is well settled by plethora of judicial precedents, including Pr. CIT vs. Manzil Dineshkumar Shah [2018 (5) TMI 1176 - GUJARAT HIGH COURT] the SLP against which has been dismissed [2019 (1) TMI 1284 - SC ORDER] that reopening is not permissible merely to seek investigation of facts collected without holding at least prima facie belief towards escapement of income based on relevant material. The conditions set out for invocation of Section 147 of the Act have not been met in the instant case. Hence, the notice issued under section 148 of the Act is not backed by authority of law and consequently bad in law. The assessment under section 147 of the Act as a sequel to the illegal notice under section 148 of the Act is therefore a nullity and requires to be quashed. - Decided against revenue.
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