TMI Blog2022 (1) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... Infrastructure Ltd. [ 2017 (9) TMI 1589 - DELHI HIGH COURT ] in similar circumstances set aside the re-assessment order. In paragraph-15 of the said decision, it has been observed that assessment proceedings, especially those under Section 143 (3) of the Act have to be accorded sanctity and any reopening of the same has to be on a strong and sound legal basis. It was further emphasized that there have to be reasons to believe and not merely reasons to suspect that income has escaped assessment. In the present case, apart from the fact that the reopening of the assessment being bad in law for non-supplying of the vital documents on the basis of which the reasons to believe were formed, the Court finds that the reasons for reopen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritten request for cross-examination of the persons on the basis of whose statements the reopening was supposed to have been directed and that opportunity too was not provided to the Petitioner. 5. While issuing notice in the present petition on 10th November 2016, this Court directed that no coercive action would be taken against the Petitioner, and that interim order is continuing. 6. A counter affidavit has been filed on behalf of the Opposite Parties in which, inter alia, while not denying that the objections of the Petitioner to the reopening of the assessment were not separately dealt with, it is claimed that the documents not supplied to the Petitioner were held in the fiduciary capacity . This admittedly included the report o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eport of the DDIT (Inv.) without any independent application of mind by the AO. In Sabh Infrastructure Ltd. v. Asst. Commissioner of Income Tax [2017] 398 ITR 198 (Delhi), the Delhi High Court in similar circumstances set aside the re-assessment order. In paragraph-15 of the said decision, it has been observed that assessment proceedings, especially those under Section 143 (3) of the Act have to be accorded sanctity and any reopening of the same has to be on a strong and sound legal basis. It was further emphasized that there have to be reasons to believe and not merely reasons to suspect that income has escaped assessment. The Delhi High Court also set out the guidelines for reopening of the assessment as under: (i) while comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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