TMI Blog2008 (8) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... held that the reassessment proceedings are initiated in a mechanical manner on vague grounds. In the light of the decision in the case of Atul Jain [ 2007 (5) TMI 184 - DELHI HIGH COURT] , as well as the decision of CIT vs. Smt. Paramjit Kaur [ 2007 (8) TMI 323 - PUNJAB AND HARYANA HIGH COURT] , we are of the view that the reopening of assessment, based on mere suspicion, is invalid in law and therefore liable to be quashed. In view of our conclusion that the reopening is bad in law, it is not necessary for us to go into the other issues on merits, urged by the Revenue. In the result the appeals filed by the Revenue are treated as dismissed and the cross-objections filed by the assessee are allowed. - Member(s) : R. P. GARG., D. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sons recorded for reopening the assessment) to submit that the AO has not recorded his independent satisfaction before reopening the assessment and merely assumed jurisdiction on vague considerations as could be noted from the following para: "The Sahara Group had made certain land deals in Gurgaon wherein certain plots of agricultural land were purchased in the name of certain employees of various Sahara companies. It was found that two Sahara companies had advanced loan aggregating to Rs. 31.93 crores. From financial year 1997-98 to financial year 1999-2000 to the employees of the Sahara Group for the purchase of 223 plots of agricultural land at Chauma Village at Tehsil Gurgaon. The amount of land sanctioned to the employees against th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that the expression "information" connotes something more than a mere rumour or a gossip or a hunch and thus after foundation based on information is set up, there must still be some reasons which warrant the holding of a belief so as to necessitate the issuance of a notice under s. 148 of the Act; since the reopening was based on vague information the reassessment was held to be not valid in law. The learned counsel therefore submits that though there are other grounds on which reopening of assessment could be challenged the assessee has a strong case on this issue and hence it is not necessary to elaborate his contentions on the other facets. 5. The learned Departmental Representative on the other hand strongly supported the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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