TaxTMI 
TaxTMI 
2013 (12) TMI 1649
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....rned counsel for the assessee referred to the reasons recorded for reopening of assessment which is at page 16 of the assessee's paper book and submitted that in view of the decision of Hon'ble Jurisdictional High Court in the case of Signature Hotels P.Ltd. Vs. ITO - [2011] 338 ITR 0051 and CIT Vs. Insecticides (India) Ltd. - [2013] 357 ITR 330 (Delhi), the above reasons recorded cannot be said to be valid reasons for reopening of assessment. He stated that the reasons are vague and based upon no material and simply on the basis of some presumption of the Investigation Wing. He, therefore, submitted that the reopening of assessment should be quashed. 4. The learned DR, on the other hand, relied upon the orders of authorities below and....
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....me of the assessee from 'un-disclosed sources'. I have therefore, reason to believe that income of Rs. 1,50,000/- chargeable to tax for the A.Y. 2004-05 has escaped assessment for the reason, mentioned above. It is proposed to initiated proceedings u/s 147 of the I.T. Act, 1961. If approved, notice u/s 148 of the I.T. Act, 1961 will be issued." 6. Let us examine the validity of above reasons recorded in the light of the decision of Hon'ble Jurisdictional High Court. In the case of Signature Hotels P.Ltd. (supra), Hon'ble Jurisdictional High Court held as under:- "Held, allowing the petition, that the reassessment proceedings were initiated on the basis of information received from the Director of Income-tax (Investigation) th....
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....onable person could have formed a belief that income had escaped assessment. The notice of reassessment was not valid and was liable to be quashed." 8. If the reasons recorded in the case of the assessee are tested in the light of above observation of Hon'ble Jurisdictional High Court, we find that the reasons did not satisfy the requirement of Section 147. In the reasons recorded, the Assessing Officer simply mentioned that information was received from Director of Income Tax (Investigation) that the assessee has received the sum of `1,50,000/-. However, on what basis the inference is drawn that the above amount received is accommodation entry received by the assessee has neither been mentioned in the assessment order nor the letter o....