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2023 (3) TMI 918 - AT - Income TaxValidity of reopening of assessment - Reasons to believe - independent application of mind by AO - AO mandation to preliminary enquiry and investigation and establishing the necessary nexus between material and formation of belief that income has escaped assessment - HELD THAT:- We find that the matter is squarely covered by the decision of Smt Sudesh Rani & Others [2023 (1) TMI 716 - ITAT CHANDIGARH] wherein it was held that the AO doesn’t have the legal basis to acquire jurisdiction for reassessment u/s 147 as he has simply relied upon the report and conclusion drawn upon by Investigation Wing Kolkata without carrying out any preliminary enquiry and investigation and establishing the necessary nexus between material and formation of belief that income has escaped assessment and there was no independent application of mind by the AO as can be discernable from the reasons so recorded and in view of the same, the notice issued u/s 148 and consequent reassessment proceedings were set-aside. In the instant case as well, we find that the reasons have been recorded on identical lines by the Assessing officer simply relying upon the report and conclusion drawn upon by Investigation Wing Kolkata without carrying out any preliminary enquiry and investigation and establishing the necessary nexus between material and formation of belief that income has escaped assessment. There is clearly no independent application of mind by the AO as can be discernable from the reasons so recorded - Appeal of assessee allowed.
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