Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 496 - AT - Income TaxReopening of assessment u/s 147 - AO had got information through Investigation Wing that the assessee has received ₹ 1.60 crore from M/s M. M. Engineering Services - HELD THAT:- Assessee had duly filed his return of income and further all the receipts could not be construed as the income of the assessee - when it has been brought to the knowledge of the AO that the information on the basis of which AO had formed belief of escapement of income was in fact a wrong information, then the very belief of the Assessing Officer of escapement of income of the assessee on the basis of such information also ceased to exist. AO, under the circumstances, should have applied his mind afresh to the fresh information brought to his knowledge. If after duly considering the records including the ITR of the assessee, the AO would have been still of the view that there was reason to believe that the income of the assessee has escaped assessment, then under those circumstances, the AO was supposed to record fresh reasons to believe that the income of the assessee has escaped assessment, whereupon, the assessee should have been given an opportunity to file his objections and the Assessing Officer was accordingly supposed to proceed in accordance with law. However, in this case, despite, it was brought to the knowledge of the Assessing Officer that the information on the basis of which he has formed belief of escapement of income of the assessee, was wrong, still the Assessing Officer proceeded to frame the assessment on the basis of the aforesaid wrong information which was basis for formation of his belief. Under these circumstances, it cannot be said that the Assessing Officer has proceeded in accordance with law. Framing of the assessment on the basis of information, which was wrong information to the very knowledge of the Assessing Officer, in our view, cannot be held to be justified, nor the same can be said to be an information to form the belief that the income of the assessee has escaped assessment. The reassessment framed on the basis of such wrong information and wrong belief is not sustainable in the eyes of law and the same is hereby quashed. - Decided in favour of assessee.
|