2015 (11) TMI 128

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....efore the ITAT, Delhi 'C' Bench and the Bench has quashed the reopening of assessment. He has filed a copy of the order dated June 18, 2014 in the case of assessee's sister concern i.e. reported as (2014) 33 ITR (Trib) 526 (Del.) Indo Arab Air Services vs. ACIT. He requested that keeping in view of the decision of aforesaid case the reopening of assessment in the case of assessee may be quashed. On the contrary ld. DR relied upon the order passed by the Revenue Authorities. 2.1 We have heard the both parties and perused the records available with us specially the order passed by the ITAT Delhi 'C' Bench in the case of assessee's sister concern i.e. Indo Arab Air Services vs. ACIT reported in [2014] 33 ITR (Trib) 526 (Del.). The relevant ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vant and have bearing on the matter in regard to which the belief is exercised. The Hon'ble Supreme Court in the case of Kelvinator of India Ltd. [2010] 320 ITR 561 (SC) has also held that for the AO to reopen the assessment there should be tangible material to come to the conclusion and should have a livelink with the formation to belief to come to a conclusion that there is escapement of income. On similar lines, the Hon'ble Supreme Court in the case of Sheo Nath Singh [1971] 82 ITR 147 (SC) has held that the reason to believe must be that of a reasonable person based upon reasonable grounds; the AO may act on direct or circumstantial evidence, but not on mere suspicion or vague information. If proper reason for his belief does not exi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssed to income tax. Return along with account statement, sales, purchases, bank transactions are filed on the basis of audited books of account. The AO himself has given a finding in the reasons that the cash transactions are recorded in the books of account. Thus from the AO's reasons itself it emerge, the information sent by the Enforcement Directorate was not correct. The information no plausible explanation from the Enforcement Directorate point of view again is vague and cannot be a basis for the AO to form a belief unless the statement given by Mr. Chetan Gupta to this effect was also enclosed with the information which does not emerge from record. Thus, both the suspicion raised by Enforcement Directorate were incorrect and oug....