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2024 (3) TMI 253 - BOMBAY HIGH COURTReopening of assessment u/s 147 - Reasons to believe or suspect - huge share transaction - HELD THAT:- Since the admitted position is that the AO does not have reason to believe but only reason to suspect, as held by this Court in Darpan P. Chandaliya V/s. Income Tax Officer [2023 (9) TMI 1041 - BOMBAY HIGH COURT]reopening of assessment is not satisfactory. In the case at hand, the AO does not say that any income has escaped assessment. All that the AO desires is examination of certain details pertaining to the actual extent of escapement of income which can be established only after detailed investigation. Even in the reasons recorded, it says “ In this case as per the CIB information you have entered into huge share transaction and it is necessary to verify the above aspect, it is necessary to reopen the case ”. That cannot be stated to be founded on the belief that any income which is chargeable to tax has escaped assessment and hence, such verification is necessary. Just because some information has been received from CIB does not entitle the AO to reopen assessment. The reasons must be founded on the satisfaction of the AO that income chargeable to tax has escaped assessment. Once that is not to be found, then, the impugned notice cannot be sustained. As noted earlier, what we find is that there are no reasons to believe but only reasons to suspect. Hence, reopening of assessment is not satisfactory. Decided in favour of assessee.
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