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The AO has wrongly and illegally assumed jurisdiction in this case to reopen the assessment. The reasons pointed out by the AO cannot be said to be the reasons "to form the belief' that income of the assessee had escaped assessment. In view of this, since the assessment order framed by the AO is not sustainable in the eyes of law, the same is accordingly quashed.

Shanti Prime Publication Pvt. Ltd.

Sec. 143(1), 147 & 148 of Income-tax Act, 1961— Reassessment— Mere information that the assessee had received a high premium cannot be said to be a reason to form the belief that the income of the assessee had escaped assessment

Facts: The assessee in this appeal has raised the ground that CIT(A) has erred in confirming the order of AO with regard to reopening of the assessment under s. 148 and, thereby, the assessment is illegal and void and there was reason to believe with the AO for issuance of notice under s. 148 and further there was tangible material for the purpose of reopening of the case under s. 148.

Held, that mere information that the assessee had received a high premium cannot be said to be a reason to form the belief that the income of the assessee had escaped assessment. AO has assumed jurisdiction relying upon non specific routine information blindly without caring to first independently consider the specific facts of the assessee's case. The AO has wrongly and illegally assumed jurisdiction in this case to reopen the assessment. The reasons pointed out by the AO cannot be said to be the reasons "to form the belief' that income of the assessee had escaped assessment. In view of this, since the assessment order framed by the AO is not sustainable in the eyes of law, the same is accordingly quashed. - INDO GLOBAL TECHNO TRADE LTD. V/s ITO - [2020] 26 ITCD Online 090 (ITAT-CHANDIGARH)