2016 (6) TMI 1144

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....he case and in law, the Commissioner of Income Tax (Appeals)-XXXIII, New Delhi erred in rejecting appellant's contention that assessment order made by Assessing Officer was bad in law and void ab-initio. 2. That without prejudice, on the facts and circumstances of the case and in law, the Commissioner of Income Tax (Appeals)-XXXIII New Delhi erred in upholding the assumption of jurisdiction u/s 147 by the Assessing Officer and in making the assessments in pursuance thereof." 3. At the time of hearing before us, it is stated by the learned counsel that this issue is squarely covered by the decision of ITAT in the case of USG Buildwell Pvt.Ltd. vide ITA No.4517/Del/2013, order dated 15th February, 2016. He referred to the reas....

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.... learned counsel that the decision of ITAT in the case of USG Buildwell Pvt.Ltd. would be squarely applicable. In the above case, the ITAT held that reopening u/s 147 is not valid. The relevant finding of the ITAT reads as under:- "10. The very perusal of the reasons, it is apparent that these were based on the information received from ACIT, Central Circle-19, New Delhi after narration of which, the Assessing Officer has simply recorded that she has reason to believe that amount/income of Rs. 20 lacs has escaped assessment for the assessment year 2004-05 for failure on the part of the assessee to disclose fully and truly all material facts necessary for its assessment within the meaning of sec. 147 of the Income-tax Act, 1961. Not....

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....t is evident in the reasons recorded, reproduced hereinabove, the Assessing Officer has simply recorded the information received from her colleague and without making any exercise of her mind on those information to form her own reasons to believe for the escaped assessment of Rs. 20 lacs, has issued notice under sec. 148 of the Act. We thus respectfully following the ratios laid down by the Hon'ble Jurisdictional High Court of Delhi in the case of CIT vs. G&G Pharma India Ltd. (supra) hold that the reasons to believe recorded by the Assessing Officer in the present case to initiate the proceedings under sec. 147 of the Act without application of her own mind on the information received were not as per the requirement of the provisions ....