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2023 (10) TMI 1277 - ITAT RAIPURReopening of assessment u/s 147 - “reasons to believe” - unaccounted cash purchases - Non issue of valid notice u/s. 143(2) - HELD THAT:- We concur with the view taken by the CIT(Appeals) that the same clearly reveals non-application of mind on the part of the A.O who had initiated proceedings for making fishing and roving inquiries which cannot be justified to be drawn in the garb of proceedings u/s. 147 of the Act. Apart from that, as the A.O had neither in the “reasons to believe” nor in the assessment order as well as in the course of proceedings before the CIT(A) placed on record any material/evidence which would evidence that the assessee had made the impugned unaccounted cash purchases from/through Shri Ramesh Kundanani therefore, as observed by the CIT(Appeals) and, rightly so, it can safely or in fact inescapably be inferred that there was no tangible material available with the A.O, on the basis of which, he could have arrived at a belief that the income of the assessee chargeable to tax had escaped assessment. We concur with the view taken by the CIT(Appeals) that as the A.O had neither in the “reasons to believe” or in the body of the assessment order or in the course of the proceedings before the CIT(Appeals) placed on record any material/ evidence which would reveal that he had any tangible material available before him to arrive at a bonafide believe that income of the assessee chargeable to tax had escaped assessment, therefore, in absence of any such tangible material justifying the formation of bonafide belief, the very jurisdiction assumed by him u/s. 147 of the Act cannot be sustained. No infirmity in the view taken by the CIT(Appeals), who had rightly observed that in the absence of any tangible material that would have justified the formation of a bonafide belief on the part of the A.O that the income of the assessee chargeable to tax had escaped assessment, the assumption of jurisdiction by the A.O u/s. 147 of the Act was devoid and bereft of any force of law. Admittedly, the notice u/s. 143(2) of the Act could have been issued to the assessee by 30.09.2016. As observed by us hereinabove, the Ld. DR, on being confronted with the aforesaid claim of the assessee’s counsel, could not rebut the same. As the impugned assessment in the case of the assessee had been framed in the absence of any valid notice u/s. 143(2) of the Act, which is the foundation for passing a valid assessment order, we find substance in the claim of the Ld. AR that the impugned order passed by the A.O u/s. 147 r.w.s. 143(3) of the Act dated 28.10.2016 could not be sustained on the said count itself and was liable to be struck down - Appeal of assessee allowed.
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