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2022 (11) TMI 234 - AT - Income TaxReopening of assessment u/s 147 - assumption of jurisdiction under section 147 read with section 148 - HELD THAT:- The validity of assumption of jurisdiction by the AO under section 147 read with Section 148 of the I.T. Act, 1961 is to be examined on the basis of the reasons recorded by the AO for coming to the belief that income had escaped assessment. Such reasons have to be recorded before assumption of Jurisdiction u/s 147 ( i.e. before issue of notice u/s 148 ). Any developments which take place after assumption of jurisdiction under section 147 of I.T. Act (i.e. 148 of I.T. Act) has no relevance for deciding whether the AO had reason to believe, before assumption of jurisdiction under section 147 of I.T. Act ( i.e. before issue of notice u/s 148 of I.T. Act) that income had escaped assessment. When such reasons are not made available by Revenue either to the assessee or to the appellate authorities [Ld. CIT(A) as well as ITAT]; we have to conclude that the onus has not been discharged by Revenue to justify assumption of jurisdiction under section 147 of I.T. Act through issue of notice under section 148 of Income Tax Act. When the assumption of jurisdiction under section 147 read with section 148 of I.T. Act lacks validity, the resultant assessment order lacks legitimacy. Assessing Officer has conducted inquiries without authority of law before issue of notice under section 148 - Thus, the assumption of jurisdiction by the A.O. u/s147 of I.T. Act read with section 148 is based on inquiries conducted without the authority of law. It is of the firm view that assumption of jurisdiction under section 147 r.w.s. 148 on the basis of inquiries conducted without the authority of law lacks legitimacy. Assumption of jurisdiction must be held to be unauthorized, when the inquiries made for assuming the jurisdiction were unauthorized in law and the assessment order passed in pursuance of unauthorized assumption of jurisdiction under section 147 r.w.s. 148 of I.T. Act, also lacks legitimacy. Assumption of jurisdiction must be held to be unauthorized, when the inquiries made for assuming the jurisdiction were unauthorized in law and the assessment order passed in pursuance of unauthorized assumption of jurisdiction under section 147 r.w.s. 148 of I.T. Act, also lacks legitimacy. - Decided in favour of assessee.
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