Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (9) TMI 1042 - HC - Income TaxReopening of assessment u/s 147 - Reason to believe - non independent application of mind by AO - HELD THAT:- Notice under Section 148 of the Act has been issued without ascertaining the income that has escaped assessment and AO has merely stated, “I have reason to believe that income of Rs. 7,00,000/- chargeable to tax in assessee’s case has escaped assessment,” which shows that proceedings have been initiated in a casual manner so as to conduct roving inquiries. The AO in his letter dated 15th September 2014 and 14th August 2014 respectively rejecting the objections raised by Petitioners, has given fresh reasons not included in the reasons as recorded under Section 148(2) of the Act, which Courts have time and again held cannot be done. These reasons cannot be improved upon and/or supplemented much less substituted by affidavit and/or oral submissions. Just because some information has been received from the Investigation Wing, do not entitle Respondents to re-open assessment. The reasons must be founded on the satisfaction of AO that income chargeable to tax has escaped assessment. Once that is not to be found, then, the impugned notice cannot be sustained. What we find is that there are no reasons to believe but, only reasons to suspect. Hence, re-opening of assessment is not satisfactory. We hereby quash and set aside the impugned notices issued under Section 148 - Decided in favour of assessee.
|