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2016 (7) TMI 970 - HC - Income TaxValidity of reopening an assessment - reasons to believe - undisclosed investment - Held that:- Assessing Officer in the reasons recorded has referred to is the notice issued to assessee for production of details regarding investment of ₹ 25 lacs made in Reliance Mutual Funds; that the assessee did not attend or submit the details regarding the transaction. He was therefore, of the opinion that investment remained unexplained and needed to be verified. Such points are required to be examined in detail after obtaining evidence from the assessee and it was for this purpose that the Assessing Officer resorted to reopening of the assessment. The petitioner was granted just about 12 hours of time to respond to the notice for production of material and upon the petitioner failing to do so, the Assessing Officer presumed that such investment required further investigation. Further as pointed out by the assessee, such investment was very much part of the books of audited accounts of the assessee. If the Assessing Officer had perused such accounts, his anxiety that such investment may not have been reflected in the books would have been taken care of. Even when the petitioner pointed out this fact to the Assessing Officer in the letter of objection, the Assessing Officer did not advert to this issue while disposing of such objections. Surely, having once issued the notice for reopening, it was not impermissible for the Assessing Officer to drop the same if through objections the assessee pointed out that the reasons for which the notice was issued are completely erroneous. Even in such a case, the Assessing Officer were to stick to his original position, the entire formula provided in case of GKN Driveshafts (India) Ltd. v. Incometax officer and others (2002 (11) TMI 7 - SUPREME Court ) would fail. The contention that there was sufficient other materials suggesting money laundering or other financial irregularities, has not come in the reasons recorded and such ground therefore, cannot be examined to support the notice for reopening. - Decided in favour of assessee
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