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2018 (2) TMI 249 - ITAT PUNEReopening of assessment u/s 147 - reasons to believe - Held that:- In the absence of any tangible material establishing escapement of income in the hands of assessee, the AO has erred in exercise of jurisdiction under section 147 of the Act by reopening assessment after recording reasons. The reasons to believe of escapement of income should have a live link with the tangible material and even if the assessment order was passed u/s 143(1) the requirement is for the AO to come to a finding on the basis of tangible material to establish his case of reason to believe of escapement of income; in the absence of which, re-assessment proceedings are both invalid and bad in law. Accordingly, we hold so and cancel the re-assessment proceedings initiated in the case of assessee, the consequent order passed under section 143(3) r.w.s. 147 of the Act does not stand. Thus, the ground of appeal No.1 raised by the assessee is allowed.
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