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2021 (4) TMI 714 - ITAT GUWAHATIReopening of assessment u/s 147 - ITO, Ward-2(2) jurisdiction under the provisions of section 127 to issue notice - assessee may not have accounted for the income earned from derivative transactions - HELD THAT:- The only reason mentioned was that it appears that the assessee may not have accounted for the income earned from derivative transactions whereas the assessee replied that the said income was duly accounted for in the return of income. But without application of mind and without considering this reply, the ACIT, Circle-2 transferred the case to the ITO, Ward-2(2) for framing of reassessment. In this case, neither the Officer framing the assessment himself has formed the view that the income of the assessee has escaped assessment nor the Officer who had recorded reasons applied his mind to the submissions of the assessee that there was no escapement of income on the issue raised by the ACIT, Circle-2. Moreover, the case has been transferred by the ACIT, Circle-2 himself for which he did not have the jurisdiction under the provisions of section 127 of the Act. So, in this case, the ITO, Ward-2(2) had no jurisdiction to continue with the assessment which was transferred by the ACIT, Circle-2, rather, as per the provisions of the Act, the ITO, Ward-2(2) if wanted to make reassessment of the assessment, he himself should have formed the belief of the escapement of income or in the alternative, the case might have been transferred to him by the order of the Commissioner as per the provisions of the Act. Therefore, the reassessment framed in this case is bad in law and the same is hereby quashed - Decided in favour of assessee.
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