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TMI Blog2018 (4) TMI 606X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. 2. On the facts & circumstances of the case Ld. A.O. grossly erred in issuing the notice u/s 148 of the Act without recording the independent reasons and without applying independent mind. 3. On the facts & circumstances of the case Ld. A.O. grossly erred in initiating reassessment proceedings on the same issue which was discussed & assessed at the time of original assessment made U/s 143(3) of the Act. 4. On the facts & circumstances of the case Ld. A.O. grossly erred in initiating reassessment proceedings without having any fresh information forming the belief of escapement of Income chargeable to tax as the Ld A.O. was having the DLC rate at the time of original assessment. This fact is coming out from the Audit objection its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the ld. CIT(A), the assessee is in appeal before the ITAT. Grounds No. 1 to 5 of the appeal are against the legality of reopening of the assessment. Ld. counsel for the assessee reiterated the submissions as made in the written submissions. The submissions of the assessee are reproduced as under: 1. No fresh information. Reassessment is based on change of opinion:- Your honours in this case the reassessment proceedings has been initiated on the basis of material which was on the record at the time of original assessment proceedings. No new fresh material come to the knowledge of Ld AO at the time of recording of reasons for invoking provisions of section 147 of the Act. The reassessment proceedings have been initiated on the sole ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer has power to reopen, provided there is tangible material to come to the conclusion that there is escapement of income. It is also settled law that the report of revenue audit party only gives an opinion and there being no new or fresh material before the AO, change of opinion cannot form the basis for reopening of assessment. Reliance is placed on the decision of Hon'ble High Court of Delhi in the case of Carlton Overseas Pvt. Ltd v/s ITO 318 ITR 0295 (2009). Hon'ble Rajasthan High Court in the case of Smt. Jyoti Devi 218 CTR 0264 has held that in absence of any information or material which had subsequently come to the notice of the AO to enable him to form the requisite belief of escapement of income. It was rig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mind by the Assessing Officer. Your Honour, it is the basic condition of section 147 that the belief should be of assessing officer only. In this case assessing officer has not applied his mind independently and has relied upon only on the Audit Party Report. Therefore also the initiation is unlawful. It is also unlawful on the part of Ld AO by not providing the copy of original reasons recorded by him. We humbly rely on High Court of Bombay in the case of CIT V/s VSNL 340 ITR 0066 (Bombay). 5. On the contrary, the ld DR has opposed the submissions of the assessee and vehemently supported the orders of the authorities below. 6. We have heard the rival contentions of both the parties, perused the material available on the record and als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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