TMI Blog2023 (11) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 1041 - BOMBAY HIGH COURT] a similar situation arose where also the AO had noted that he is seeking some information to examine the case of assessee. The Court held that, that cannot be stated to be founded on the belief that any income which is chargable to tax has escaped assessment. Just because some information has been received does not entitle Respondent to reopen assessment. The reasons must be founded on the satisfaction of the AO that income chargeable to tax has escaped assessment. Once that is not to be found, then the impugned notice cannot be sustained. The Court said, what is found is that there are no reasons to believe but, only reasons to suspect. Hence, reopening of assessment is not satisfactory. In the circumstances, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. 3. The agreement referred therein is dated 9th May 2013 which pertains to Assessment year 2014-15 and certainly that cannot be a basis for escapement of income for AY 2015-16. When this was brought to the notice of the AO, the AO, while disposing Petitioner s objections vide an order dated 31st December 2021, states that the assessee might have entered into agreement with the other party on 10th May 2013, but the incidence of income tax or any other income accruing to the party is also possible in AY 2015-16 and that can be ascertained/verified only through analysis/investigation of the Joint Development Agreement entered by assessee with the other party for which the reassessment proceedings have been initiated. 4. In Darpan Chandliy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year, then, the AO may, subject to the provisions of Sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment. In the case at hand, the AO does not say that any income chargeable to tax has escaped assessment. All that the AO desires is examination of certain details pertaining to the amount paid by Petitioner to Crown . That cannot be stated to be founded on the belief that any income which is chargeable to tax has escaped assessment and hence such verification is necessary. Just because some information has been received from the Investigation Wing, does not entitle Respondent to reopen assessment. The reasons must be founded on the satisfaction of AO that income charge ..... X X X X Extracts X X X X X X X X Extracts X X X X
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