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2022 (12) TMI 104 - AT - Income TaxReopening of assessment u/s 147 - Reasons to believe - tangible material showing the escapement of income - assessee made payments in cash excess of Rs.20,000/- to a person in a day - HELD THAT:- AO did not mention any tangible material came to its knowledge for reopening and also the failure of the assessee in disclosing fully and truly all the relevant particulars. In similar circumstances the Hon’ble Supreme Court in the case of Kelvinator of India Ltd.[2010 (1) TMI 11 - SUPREME COURT] that reopening could be done on fulfillment of two conditions. The Hon’ble Supreme Court held that after 01-04-1989 the AO has to power to reopen, provided there is tangible material to come to the conclusion that there is escapement of income from other assessment. Further, there must be reasons recorded showing live link with the formation of the belief that there is escapement of income from assessment. In the present case, find no such tangible material came to the knowledge of AO which resulted in a conclusion that there is a escapement of income from original assessment. Further no live link with the formation of such belief that there is a escapement of income from assessment except stating that an examination of ledgers of purchasers. AO has no jurisdiction to reopen the assessment in the absence of any tangible material showing the escapement of income. Thus, the reassessment framed by the AO fails and as confirmed by the CIT(A) is not justified. Ground raised by the assessee is allowed.
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