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2022 (5) TMI 375 - HC - Income TaxReopening of assessment u/s 147 - Eligibility of reasons to Believe - HELD THAT:- As decided in the case of Radha Krishna Industries [2021 (4) TMI 837 - SUPREME COURT] power to reopen an assessment must be conditioned on the existence of “tangible material” and that “reasons must have a live link with the formation of the belief”. Perusal of the impugned notice under Section 148 of the Act, 1961 and other impugned orders clearly shows that the “reason to believe” recorded by the assessing authority, failed to pass the standard of reason exercised by the assessing authority to be that of an honest and prudent person who would act on reasonable grounds and come to a cogent conclusion. The reasons recorded were totally unfounded and consequently the jurisdictional notice under Section 148 issued by the assessing authority was without jurisdiction. Once the notice under Section 148 of the Act, 1961 issued by the assessing authority was without jurisdiction, the subsequent proceedings, including re-assessment order, cannot be sustained. - Decided in favour of assessee.
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