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2017 (1) TMI 779 - AT - Income TaxValidity of reopening of assessment - reasons to believe - non passing of speaking order - Held that:- In the reasons recorded, there is no live link between the reasons to believe and income escapement assessment. We are aware that the reason recorded to re-open has to be seen on a standalone basis which triggered to reopen the case under section 147 of the Act. In the light of the above we are of the opinion that it cannot be concluded that AO was not having sufficient information at the time of initiating action u/s 147 for forming reason for escapement of income. In the light of the above, we hold that there was no fresh tangible material available for the foundation on which the AO has made up his mind to reopen the case under section 147 of the Act. Accordingly we find force in the contention of the ld. AR that there was no shred of evidence in the hands of the AO while reopening the case which can be termed as a new tangible material and link to base a reason to believe escapement of income. Therefore, the entire reopening is vitiated on this count. In the absence of the said jurisdictional fact renders the reopening 'coram non judice' and the assessment 'null' in the eyes of law. We also find that the AO is under obligation to dispose of the objection raised by the assessee for the reopening of the case under section 147 of the Act by way of speaking order in terms of the Hon’ble Supreme Court in the case of GKN Driveshafts (India) Ltd v. Income Tax Officer (2002 (11) TMI 7 - SUPREME Court ). But we find that the AO failed to pass a speaking order on the objections raised by the assessee to the reopening of the assessment. The AO assumed jurisdiction in the instant case on wrong assumption of facts. In view of above, we are of the view that AO has erroneously usurped jurisdiction which law does not permit him to do on the reasons given above, so the entire action of AO is ab-initio void and is quashed. - Decided in favour of assessee
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