Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 553 - BOMBAY HIGH COURTValidity of reopening of assessment u/s 147 - Reopening as relying on opinion rendered by the audit party - non independent application of mind by AO - Borrowed satisfaction - HELD THAT:- The reason to believe that income has escaped assessment, cannot be based on borrowed information. The Apex Court in Indian & Eastern Newspaper Society Vs. Commissioner of Income Tax [1979 (8) TMI 1 - SUPREME COURT] held that opinion of internal audit of Income Tax Department can not be regarded as information within the meaning of Section 147(d) of the Act. In Hamilton Housewares (P) Ltd. [2019 (3) TMI 320 - BOMBAY HIGH COURT]this Court while quashing the notice issued u/s 148 of the Act reiterated settled position of law that the decision to reopen assessment must be on the basis of the belief found by the Assessing Officer. It must be open for the audit party to bring relevant aspect to the notice of the Assessing Officer. But thereafter it must be the independent decision of the Assessing Officer to reopen assessment upon formation of his belief that income chargeable to tax had escaped assessment. In the circumstances, in our view also notice issued u/s 148 of the Act, can not be sustained. - Decided in favour of assessee.
|