TMI Blog2022 (2) TMI 1138X X X X Extracts X X X X X X X X Extracts X X X X ..... that BL Jain Group was providing accommodation entries of unsecured loan and bogus purchases. Then, he goes on to mention that it is established from the report that the assessee has taken accommodation entries and hence he has reasons to belief that the income has escaped assessment. Primarily, we find that the reasons recorded by the assessee are too sketchy and does not instill any confidence with regard to the reasons recorded for reopening. It is not even clear whether the assessee has received entries pertaining to loans or purchases. The details of the report wherein it was alleged that the assessee has received bogus entries could not be made as a basis for reopening. The existence of belief has to be bonafide and has to be base ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 016. The CO filed by the assessee reads as under : Reopening notice issued by the Assessing Officer based on information received by him from the DDIT(Inv.) and not on his own satisfaction amounts to reopening on borrowed satisfaction in clear breach of settled position of law rendering the reassessment proceedings without jurisdiction. 2. The assessee has filed return of income on 30.09.2011 declaring total income of ₹ 1,66,73,810/-. Owing to the search conducted u/s. 132 of the Income Tax Act, 1961 notice u/s. 153A has been issued to the assessee. The assessee filed letter dated 07.02.2014 that the return filed u/s. 139(1) dated 30.09.2011 may be treated as return filed in response to notice u/s. 153A. Assessment was compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ind that the reasons recorded by the assessee are too sketchy and does not instill any confidence with regard to the reasons recorded for reopening. It is not even clear whether the assessee has received entries pertaining to loans or purchases. The details of the report wherein it was alleged that the assessee has received bogus entries could not be made as a basis for reopening. The existence of belief has to be bonafide and has to be based on material which is relevant hence specific in nature. The basis of the belief should be discernable from the facts on record and ascertainable with regard to the escapement of income. 7. Joshi Vs. Income-Tax Officer and Another, 2010 (324) ITR 154 (Bom.) and it was held as under: Section 147 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons for reopening an assessment were recorded. The principle of law, therefore, is well settled that the question as to whether there was reason to believe, within the meaning of section 147 that income has escaped assessment, must be determined with reference to the reasons recorded by the Assessing Officer. The reasons which are recorded cannot be supplemented by affidavits. The imposition of that requirement ensures against an arbitrary exercise of powers under section 148. 8. In Hindustan Lever Ltd. vs. R.B. Wadkar, [2004] 268 ITR 332 (Bom), a Division Bench has opined thus: .... the reasons are required to be read as they were recorded by the Assessing Officer. No substitution or deletion is permissible. No additions can be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has also been completed on 31.03.2014. The reasons, in the instant case recorded by the AO do not satisfy the requirements of Section 148 of the Act. The reasons and the information referred is extremely scanty and sudden jump to the conclusions. There is no reference to any specific document except the Annexure which cannot be regarded as material or prima facie evidence to establish the link to point out escapement of income. The Annexure is not a pointer and does not indicate escapement of income per se. Hence, going through the reasons recorded of the AO on 10.10.2014 and the judicial pronouncements mentioned above, in the absence of any tangible material to establish the escapement of income for assessment, we hold that the action of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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