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2022 (12) TMI 230 - AT - Income TaxReopening of assessment u/s 147 - Suspicion of Revenue - Bogus LTCG - HELD THAT:- Tribunal Delhi bench in decision dated 29/09/2021 the case of Dove Consultants Pvt. Ltd. [2021 (12) TMI 797 - ITAT DELHI] held that reopening has to be based on the reliable material and not on the basis of reason to suspect, accordingly, the Tribunal quashed the reassessment proceeding. In judgment case of PCIT Vs M/s. Shodiman Investments Pvt. Ltd. [2018 (4) TMI 1287 - BOMBAY HIGH COURT]held that reassessment proceeding cannot be initiated based on suspicious transactions in the bank account of Mahasagar Securities Ltd. In the instant case also according to the AO he found the long term capital gain declared by the assessee as suspicious transactions and not as reliable information and for ascertaining, he needed the investigation. In our opinion, in view of the decision of the Hon’ble Bombay High Court in the case of Shodiman Investments P. Ltd. [2018 (4) TMI 1287 - BOMBAY HIGH COURT] AO is not permitted to reopen assessment based on the reason to suspicion. The reassessment proceedings completed in the case of the assessee are held to be invalid and accordingly same are quashed. The additional ground raised by the assessee is allowed.
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