2022 (1) TMI 900 - HC - Income Tax

Reopening of assessment u/s 147 - Reopening on the basis of the audit objections - HELD THAT:- Reopening is made on the basis of the objections received from the revenue audit cell, usually referred as audit objections. Identical objection, as raised in the reasons for reopening, was raised and communicated to Petitioner on 14.03.2019. Petitioner, in response to the audit queries, had provided clarifications to the Assessing Officer. It is a well laid down principle that the re-assessment proceedings initiated merely on the basis of the audit objections are illegal and not valid in law and as such re-assessment proceedings have been repeatedly again quashed and set aside by the Courts. See INDIAN AND EASTERN NEWSPAPER SOCIETY [1979 (8) TMI 1 - SUPREME COURT], JAGAT JAYANTILAL PARIKH [2013 (5) TMI 330 - GUJARAT HIGH COURT] and ICICI HOME FINANCE CO. LTD. [2012 (8) TMI 312 - BOMBAY HIGH COURT]

As the reasons for reopening of the assessment are almost identically worded as that of audit report. In view of the foregoing, since, in the case at hand also the reopening of the assessment being at the behest of the audit party, the reopening of the assessment is misconceived, incorrect and bad in law. - Decided in favour of assessee.