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2022 (10) TMI 895 - AT - Income TaxReopening of assessment u/s 147 - bogus long term capital gain in the scrip - HELD THAT:- AO has reopened the assessment of A.Y. 2013-14 on the basis of information relating to AY 2011-12. Admittedly the AO has not referred to any material relating to the AY 2013-14 for arriving at the belief that there was escapement of income in the hands of the assessee in A.Y. 2013-14. It is well settled principle of law that the material relied upon by the AO should have a live or proximate link with escapement of income. It was so held in the case of Amsa India Pvt. Ltd. [2017 (4) TMI 64 - DELHI HIGH COURT] and also in the case of Moser Bare India Ltd. [2012 (12) TMI 456 - DELHI HIGH COURT].There was material in the hands of the AO relating to assessment year under consideration for arriving at the belief that the Capital gains declared by the assessee in the return of income filed for A.Y. 2013-14 is bogus in nature.There is no live link between the material in the hands of the assessee and the belief entertained y him. AO has entertained such a belief only on the suspicion and surmises and not on the basis of any material. Accordingly hold that the reopening of assessment is bad in law. Accordingly we quash the impugned orders passed by the tax authorities on the legal issue. Appeal filed by the assessee is allowed.
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