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2022 (8) TMI 576 - AT - Income TaxReopening of assessment u/s 147 - investment in trade market through broker and manipulated his income by shifting in losses / shifting in profit - HELD THAT:- As the reopening was done on the basis of information received from the Investigation Wing as has been accepted by the AO and the CIT(A) in their respective orders, therefore, in the absence of independent application of mind by the AO, the reopening in the instant case under section 147 r.w.s 148 of the Act was not justified. Investigation Wing supplied the information to the AO that there was a client code modification to manipulate the profit as was the case in the aforesaid referred to case of Shri Tulsi Dass, Laxmi Nagar, Delhi [2019 (1) TMI 1985 - ITAT DELHI] - Therefore for the same reasoning the reassessment order in the case of the assessee also deserves to be quashed. AO acted only on the basis of suspicion and acted on the basis of information received from the Investigation Wing therefore the reassessment proceedings was not valid. Moreover in the reasons recorded, copy of which is placed of the assessee’s paper book. AO categorically stated that the AO had reason to believe on the basis of observation of the Directorate of Investigation that the assessee had probably shows bogus profit to adjust unaccounted money generated from business or elsewhere and he had reason to believe on that basis that the amount had escaped assessment within the meaning of Section 147. From the aforesaid notings of the AO in the reasons recorded it is clear that the AO was not sure as to whether income escaped the assessment. Since the word probably has been used, and there was no application of his own mind by the AO who depended only on the information received from the Investigation Wing. We therefore by considering the totality of the facts as discussed herein above are of the view that the reopening in the instant case on the basis of borrowed information by the AO from the Investigation Wing without applying his independent mind was not justified. Accordingly the subsequent reassessment proceedings framed by the AO is quashed. - Assessee appeal allowed.
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