Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 28 - AT - Income TaxReopening of assessment u/s 147 - necessity of recording satisfaction as to the income escaping the assessment - independent application of mind by AO OR borrowed knowledge - reopening was made after receipt of information that the assessee is beneficiary of sum received from Surya Commotrade Pvt. Ltd. through its bank account which is a layered company and the assesse is beneficiary of loan provided by the said company - HELD THAT:- We note that the AO has discussed in reason the transaction in the bank account of third party and no where recorded a satisfaction that the amount which is received by the assessee of Rs. 10,00,000/- has escaped assessment. Thus, we find merit in the contentions of the Ld. A.R. that reason recorded are based upon presumption and surmises without recording a clear cut finding as to escapement of income. The case of the assessee finds support from the decision of MLB Commerical Pvt. Ltd [2021 (3) TMI 1396 - ITAT KOLKATA]. Also there is no application of mind by the AO to the information received and whatever has been supplied to the AO has been taken as it is without any independent application of mind by AO and thus AO has failed to demonstrate any live link between the material received and formation of reason to believe that income had escaped assessment. The case of the assessee find support from the decision in the case of Meenakshi Overseas Pvt. Ltd. [2017 (5) TMI 1428 - DELHI HIGH COURT] wherein it has been held that where there is no independent application of mind by the AO to tangible material and conclusion of AO was reproduction of the investigation report, reasons failing to demonstrate link between tangible material and formation of reason to believe that income has escaped assessment , the reassessment is unjustified. Appeal of assessee allowed.
|