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2023 (2) TMI 750 - AT - Income TaxReopening of assessment u/s 147 - assessee had entered into cash transactions exceeding Rs.10,00,000 in a month, resulting in escapement of income - HELD THAT:- A reading of the reasons recorded would show that the AO on the basis of information down loaded from the system of the department found that in the year under consideration, assessee had entered into cash transaction exceeding Rs.10,00,000 in a month. AO has not elaborated in the reasons recorded, what is the nature of information received and what is the nature of cash transaction, whether, deposits in any bank account, cash purchases, cash receipts etc. As in the reasons recorded, AO has referred to three different assessment years in three paragraphs. While, in paragraph 1, he has referred to assessment year 2011-12, in paragraph 2, he has referred to assessment year 2010- 11 and finally in paragraph 3, he has formed a belief that income of Rs.10,00,000 chargeable to tax has escaped assessment for assessment year 2008-09. Thus, the reasons recorded make it amply clear that AO has acted mechanically and without application of mind to the facts and material on record. Such lackadaisical approach for reopening of assessment u/s 147 cannot be condoned. For this reason alone, the reopening of assessment u/s 147 has to be declared invalid as there is no nexus between the information available with the Assessing Officer and formation of belief. Appeal of assessee allowed.
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