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2023 (10) TMI 1203 - HC - Income TaxReopening of assessment u/s 147 - Reasons to believe - petitioner has entered into unaccounted transactions as per the information made available through Insight Portal along with the report of the DCIT Surat - Assessee submitted that the reasons recorded by the AO are absolutely vague, scanty and non-specific as AO has failed to disclose the nature of transaction, date of transaction, name of party with whom the transactions allegedly have been entered into and whether such transaction relates to balance-sheet item or profit and loss item of either of the petitioner - HELD THAT:- On perusal of the reasons recorded by the respondents, it is clear that no information is revealed with regard to the nature of transaction, date of transaction and name of party with whom such transaction has been entered into. In case of Harikishan Sunderlal Virmani (2016 (12) TMI 1558 - GUJARAT HIGH COURT) this Court held that from the reasons recorded, if the same are on borrowed satisfaction without forming an independent opinion, the assumption of the jurisdiction to re-open the assessment u/s 147 was bad in law. The entire exercise of re-opening would depend upon the reasons recorded by the AO and therefore the reasons recorded to re-open the assessment by the AO must disclose all relevant facts to the assessee so as to refute the reasons by filing objections. Unless the AO records his independent satisfaction in the reasons recorded on the basis of the information received and communicates the same to the assessee, right of the assessee to file objections would remain an empty formality. Therefore, recording of reasons in the facts of the case not disclosing the nature of the transactions, date of transactions and other relevant details would render the entire exercise of reopening vitiated as the respondent-assessing officer has failed to record independent reason to believe that income chargeable to tax has escaped the assessment. Decided in favour of assessee.
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