TMI Blog2022 (1) TMI 332X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee in the return of income, and thereafter he has to form a prima facie opinion that such and such income appears to have escaped from assessment. In the reasons he has nowhere even mentioned what is the loss or gain claimed by the assessee in such transactions. The assessee has filed her return of income. AO has not made any analysis on what the assessee has claimed, how prima-facie the claim of the assessee could be bogus on the basis of the information supplied by the Investigation Wing and therefore an income appears to have been escaped! Section 147 nowhere authorizes the Assessing Officer to reopen an assessment for verification of the claim made by the assessee. AO is required to analyze the information possessed by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . According to the Assessing Officer, he has received information from ADI (Inv.), Unit-1(3), Ahmedabad exhibiting the fact that the assessee has entered into transactions in different segments through Amrapali Capital and Finance Service Ltd where she indulged in Client Code Modifications and, therefore, her share/demat transactions and any other such financial transactions/activities are needed to be examined and verified. He reopened the assessment by recording reasons and issued notice under Section 148 of the Act on 29.03.2016. The learned Assessing Officer thereafter passed an assessment order on 28th December 2016. He made an addition of ₹ 12,05,353/-. This addition was made by disallowing the loss claimed by the assessee. 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial Engineers (P.) Ltd. vs. DCIT, reported in 73 taxmann.com 185. On the strength of the judgment, it was contended by the learned Sr. DR that at the stage of forming a belief that an assessment is required to reopen, the Assessing Officer is supposed to form a prima-facie opinion on the basis of information available with him and he is not required to establish the fact of escapement of income. In brief, the submission raised by him in the written note is that the Assessing Officer was having sufficient information on the basis of which he formed an opinion that the transactions of the assessee are required to be verified. Thus, the Assessing Officer has a specific information supplied by the ADIT (Inv). On perusal of such information, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax Officer, Ware-5, Gandhinagar 8. Section 147 of the Income-Tax Act contemplates that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of Sections 148 to 153, assess or re-assess such income .. . A Perusal of the aforesaid reasons would reveal that there is no application of mind at the end of the Assessing Officer. The assessee has filed her return of income. The Assessing Officer has not made any analysis on what the assessee has claimed, how prima-facie the claim of the assessee could be bogus on the basis of the information supplied by the Investigation Wing and therefore an income appears to have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Peass Industrial Engineers (P.) Ltd. Vs. DCIT (supra), but the facts are altogether different. In this judgment also the Hon ble Court has emphasized on the point that if substantial new material is found in the form of information on the basis of which the Assessing Officer can form a belief that the income of the assessee has escaped assessment, then it is always open for the assessing authority to reopen assessment. There is no dispute with regard to this proposition. There is no bar for re-opening of the assessment, but the question is that what is the information, how it has been examined and how the opinion has been formed exhibiting the fact of escapement of income? In the judgment of Hon ble Gujarat High Court in the case of P ..... X X X X Extracts X X X X X X X X Extracts X X X X
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