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2023 (9) TMI 878 - AT - Income TaxReopening of assessment u/s 147 - AO recorded the reasons solely on the basis of some information received from the ITO Ludhiana - non independent application of mind by AO - HELD THAT:- As some information from another AO is the basis on which the AO formed his satisfaction that some of the income the assessee has escaped assessment. Thus, the contention of the assessee is correct that the AO without making any independent enquiry but on his own has started proceedings u/s 148 of the Act merely on the basis of some information received from some other Income Tax Officer. This makes initiation of proceedings is bad in law. As evident from the order of the Assessing Officer, he did not make any comment on the contents of the reply of the assessee and solely passed his order on the basis of the report of the Income Tax Officer, Ward-2(2), Ludhiana and proceeded to make the impugned addition. Assessee has submitted that all the purchases are fully vouched , payments have been made through account payee cheque and the details have been duly submitted and no fault/defect was pointed out by the AO. Assessee has reiterated that the accounts of the assessee company are duly audited. The closing stock as reflected in the balance sheet has been duly accepted. Appeal of the assessee stands allowed.
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