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TMI Blog2024 (4) TMI 346X X X X Extracts X X X X X X X X Extracts X X X X ..... inafter referred to as "the Act") dated 29.06.2017 and order dated 18.03.2019 against the order of assessment passed u/s 143(3) dated 29.12.2016 by the ld ACIT, Circle-65(1), New Delhi (hereinafter referred to as "ld. AO"). 2. Let us take up the quantum appeal first in ITA No. 4491/Del/2019 for AY 2009-10. The revenue has raised the following grounds of appeal:- "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(Appeals) has grossly erred in allowing the appeal of the assessee and in quashing the assessment u/s 147 r.w.s.143(3) by holding that the notice u/s 148 of the Act is invalid without going into the merits of the case. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(Appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee on 25.07.2009 declaring taxable income of Rs. 10,92,498/-. This assessment was sought to be reopened by issuance of notice u/s 148 of the Act on 28.03.2016. The reasons recorded for reopening of assessment are as under:- "As per the Individual transaction statement (26AS) for FY 2008-09 (AY 2009- 10) the assessee Sh. Sanjay Pratap Singh [PAN: AAOPS3073R] has earned interest income of Rs. 1.82,446/- and salary income of Rs. 14,38,932/- in AY 2009-10. However, assessee has shown salary income of Rs. 9,92,492/- and income from other sources of Rs. 2,02,706/- in his Income Tax Return filed on 25- 07-2009 for assessment year 2009-10. Hence the salary income of Rs. 4,28,880/- has not been shown in the said AY 2009-10 hence I have reason to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is the main basis of reopening the assessment. This shows that the conduct of AO has been very casual and arbitrary. As held by Hon'ble Jurisdictional High court in the case Pr. CIT vs Meenakshi Overseas Pvt. Ltd 395 ITR 677, the reopening of assessment u/s 147 of IT Act is a potent power not to be lightly exercised. It cannot be evoked casually or mechanically. The reasons recorded have to be based on some tangible material and that should be evident from a reading of the observations and the reasons must be self evident and must speak for themselves and the reasons to belief must demonstrate the link between the tangible material and the formation of the belief or the reason to believe that Income escaped assessment. It has been fu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation to the ld AO to form a reasonable belief that income of the assessee had escaped assessment. 6. The ld DR merely argued before us that original return was processed u/s 143(1) of the Act and that there was no need for any tangible material for the ld AO to reopen the proceedings u/s 147 of the Act when the assessment was completed originally u/s 143(1) of the Act. We are unable to comprehend ourselves to accept this proposition of the ld DR. In our considered opinion, the existence of tangible material is prerequisite for reopening of an assessment and that tangible material should have live link or nexus with formation of belief for the ld AO to conclude that income of the assessee had escaped assessment. Under these circumstances a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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