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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 - In the absence of sufficient material to form satisfaction of the AO that income of the assessee escaped assessment, the issuance of notices under s. 148 of the Act is not valid. In the present case, the Assessee challenged the order of CIT(A) in confirming the order of AO with regard to reopening of the assessment under s. 148 of the Act saying that there was no valid reason for the AO to believe that the income of the assessee had escaped assessment. The AO has reopened the assessment without any tangible material coming to his knowledge or any other relevant evidence which may be sufficient to form the belief that the income of the assessee has escaped assessment. Ld. Tribunal allowed the appeal of the assessee holding that “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] 206 TTJ 756 (ITAT-CHANDIGARH)