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2024 (2) TMI 399 - HC - Income TaxValidity of reopening of assessment u/s 147 - order passed u/s 148A(d) - reason to believe - Mandation to provide tangible material placed by AO to show that there was escapement of income from the payment of income tax - HELD THAT:- In the instant case, on perusal of the impugned order in the writ petition we find that there are glaring omissions and more particularly the condition precedent for exercise of the power of reopening the assessment are conspicuously absent. Though the order passed appears to be an elaborate order, the conclusion is only in one paragraph. AO has stated that the bank statements in respect of the transactions done for the financial year 2015-16 (assessment year 2016-17) has to be mandatorily verified to examine the nature of transactions. This cannot done by the assessing officer because the proceedings initiated by the assessing officer for reopening the assessment for the assessment year 2016-17 has been quashed. Therefore, this is a glaring omission in the order impugned in the writ petition. Apart from that, the assessing officer would state that no prudent businessman will simply withdraw crores of cash from his bank account and again will deposit it at various stage. This is a personal opinion of the assessing officer. However, for the purpose of reopening an assessment there should be a tangible material placed by the assessing officer to show that there was escapement of income from the payment of income tax. This being conspicuously absent as could be seen from the annexure to the show cause notice the reopening proceedings have to be held to be bad in law. Thus the appeal and the writ petition are allowed and the order passed u/s 148A(d) and the consequential notice u/s 148 of the Act are quashed. Decided in favour of assessee.
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