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2020 (2) TMI 781 - AT - Income TaxReopening of assessment u/s 147 - whether the reassessment proceedings initiated by the Assessing Officer by recording the reasons u/s. 147/148 of the Act and the satisfaction recorded by the JCIT u/s.151(2)? - “reason to believe” and not “reason to suspect” - HELD THAT:- AO recorded the reasons and after getting approval from the JCIT, issued notice u/s.148 to the assessee. Accordingly, the AO completed reassessment proceeding holding that the assessee could not substantiate the source of investment made by the assessee. We have also gone through the reasons recorded by the AO/ITO, Ward-3(2), Ferozepur for reopening and the approval thereof by the Ld. Jt. CIT, Range-III, Ferozepur and found that the AO has not applied his mind so as to come to an independent conclusion that he has reason to believe that income has escaped assessment during the year under appeal. Keeping in view of the facts and circumstances of the present case and the case law applicable in the case of the assessee, we are of the considered view that the reopening in the case of the assessee for the assessment year under consideration is bad in law and deserves to be quashed. In the instant case, we find from the perusal of the order sheets Jt. CIT has simply put "yes satisfied" and signed the report thereby giving sanction to the AO. JCIT has nowhere recorded his satisfaction note nor any brief of the satisfaction has been given therein. Therefore, it cannot be said that the Jt. CIT has accorded sanction after applying his mind and after recording his satisfaction. To support our view, reliance can be placed on the decision in the case of Pr.CIT Vs. N.C.Cables Ltd., [2017 (1) TMI 1036 - DELHI HIGH COURT] wherein has observed that the satisfaction has to be recorded of the given case which can be reflected in the briefest possible manner. - Decided in favour of assessee.
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