TMI Blog2018 (5) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... rticular order cannot find a direct link as to why Department has reason to believe that income has escaped assessment so far as assessee is concerned. The objections of the assessee stating that certain wrong facts are recorded that is also not categorically rebutted by the Department. - Decided in favour of assessee. - ITA No.338/LKW/2015 - - - Dated:- 7-5-2018 - SHRI. T.S. KAPOOR, ACCOUNTANT MEMBER AND SHRI PARTHA SARATHI CHAUDHURY,JUDICIAL MEMBER For The Appellant : Shri Swarn Singh, C.A. For The Respondent : Smt. Neelam Agrawal, D.R. ORDER PER PARTHA SARATHI CHAUDHURY, J.M: This appeal preferred by the assessee emanates from the order passed by the ld. CIT(A)-II, Kanpur dated 10/11/2014. 2. Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adopted for stamp duty purpose is ₹ 6,68.86,000/-. Thus there is a difference of ₹ 2,00,86,000/- between the value adopted for stamp duty purposes and that shown as sale consideration. In other words, I. have reason to believe that a sum of ₹ 2.00,86,000/- representing capital gain u/s 50C of the Income Tax Act, 1961 has escaped taxation for assessment year 2003-04. Therefore, in order to bring this income as well as any other income noticed during the reassessment proceedings to follow, action u/s 147 is necessary. Sd/- DCIT-I, KANPUR 5. To this reason for initiating proceedings u/s. 147/148 of the Act, assessee has filed objections which are appearing from pages 98 to 103 of the paper book. Para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disposed off. The ld. A.R. of the assessee vehemently argued that this is an arbitrary and irrational way wherein no specific finding or no materials on record have been stated wherein it can be understood that these are the materials based on which reasons are recorded. Here the Assessing Officer is simply mentioning that reasons are based on credible and relevant information but what are those credible and relevant information is absolutely nowhere to be found in the order of the Assessing Officer. For such arbitrary and illegal action of the Department, this re 4 6 assessment proceedings and order passed under section 147/148 should therefore be quashed. 6. The ld. D.R., on the other hand, relied on the orders of the authorities bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision in ITA No.557/LKW/2016 in the case of Ajay Singh Chandraul vs. Income Tax Officer 2(1), Kanpur wherein it was held that in absence of basic details of property in the reasons recorded, like address, location, whether the assessee was owner or co-owner, date of sale, correct sale consideration, then it is to be inferred that the reasons were recorded mechanically without application of mind. 8. Hon'ble Apex Court in the case of Income Tax Officer Vs Lakhmani Mewal Das 1976] 103 ITR 437 (SC) has held that reasons for formation of belief contemplated by section 147 for reopening of assessment must have rational connection with or relevant bearing on formation of belief, and rational connection postulates that there must be dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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