2025 (7) TMI 1307 - AT - Income Tax

Reopening of assessment u/s 148 - tangible material to link to escapement of income - Reasons to believe - HELD THAT - We find that the assessee has not received any such amount from Swapan Das as is apparent from the evidences furnished before us including the bank statement. Therefore the reopening is made without any substantive basis and live link. We note that despite the assessee repeatedly requesting before the ld. AO that he has not received any such amount and the AO was also not having any evidence of such amount have been received by the assessee. CIT (A) has also failed to appreciate the facts correctly. Reopening of assessment has no basis and accordingly we quash the proceedings u/s 147 - Appeal of the assessee is allowed.

Summary

The Appellate Tribunal (ITAT Kolkata) allowed the assessee's appeal against the reopening of assessment for AY 2014-15 under section 147/148 of the Income Tax Act. The reopening was based on the allegation that the assessee received Rs. 55,00,000 from Shri Swapan Das during FY 2013-14, which the assessee denied, supported by bank statements evidencing non-receipt of such amount. The Tribunal held that the reopening was "without any tangible material" and lacked a "live link" to escapement of income, rendering it "bad in law." It further observed that the ld. CIT(A) failed to appreciate the facts correctly. Consequently, the Tribunal quashed the reopening proceedings under section 147 and the assessment framed under section 143(3)/147, stating: "the reopening of assessment has no basis." The appeal was allowed accordingly.