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2022 (9) TMI 1029 - AT - Income TaxReopening of assessment u/s 147 - special information received by the ld. AO regarding investment of appellant as founder in M/s Mars Educational Trust - HELD THAT:- In the assessment proceeding there is no connection in between recorded reason and addition of the income. The entire reasons to believe are itself erroneous and not established on the true fact. Respectfully considered the order of Jet Airways (I) Ltd, [2010 (4) TMI 431 - HIGH COURT OF BOMBAY] the basis of issuance of notice u/s 148 is non discloser of primary facts by the assessee. The fact which was ascertained / verified by the AO is itself erroneous. However, if after issuing a notice under section 148, he accepts contention of assessee and holds that income, for which he had initially formed a reason to believe that it had escaped assessment, has, as a matter of fact, not escaped assessment, it is not open to him to independently assess some other income. If the ld. AO intends to do so, a fresh notice under section 148 would be necessary, legality of which would be tested in event of a challenge by assessee.The entire recorded reason is erroneous. The ld AO acted beyond jurisdiction. Accordingly, the order passed u/s 147/143(3) of the Act is non est. We are in opinion that the assessment order passed by the ld. AO is erroneous and bad in law. CIT(A) had not considered the legal point in his order. Decided in favour of assessee.
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