2018 (5) TMI 633

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....nce on the Apex Court decision in the case of National Thermal Power Co. Ltd. vs. CIT, 229 ITR 383 has been pleaded that since these additional grounds are absolutely on law point and no factual verification is required, therefore, these may be taken up. 3. We have perused the additional grounds of appeal and we are convinced that these are legal grounds and needs no factual verification and thus we admit the additional grounds which go to the root of the matter. The assessee in these grounds have stated that the Assessing Officer has mechanically recorded reasons for reopening of assessment under section 147/148 and reasons are vague and based on nonexhaustive facts. 4. At the time of hearing before us, the ld. A.R. of the assessee i....

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....ted therein that assessee has sold any property for sale consideration of Rs. 4,68,00,000/- stamp value of which has been taken at Rs. 6,68,86,000/-. On the other hand, the assessee and other co-owners have executed sale deed of a portion of the property no. 63/2/C, the Mall, Kanpur for a sum of Rs. 2,34,00,000/- wherein the assessee's share is only 1/4th. This shows that "reasons recorded" are not based on 'credible 'and 'relevant information' and on this reasoning alone, the proceedings initiated should be dropped. Then the ld. A.R. of the assessee invited our attention to the reply given by the Department and copy of the order disposing the objections raised by the assessee finds place at pages 104 and 105 of the pape....

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....under section 147/148 and to determine the fate of re-assessment order let us consider the judgment of Hon'ble Bombay High Court in the case of Hindustan Lever Ltd. vs. R.B. Wadkar [2004] 137 Taxman 479 wherein it is categorically held that reasons that are recorded by the Assessing Officer for reopening of assessment are only reasons which can be considered when formation of belief is impugned, such reasons cannot be allowed to grow with age and ingenuity by devising new grounds in replies and affidavits not envisaged when reasons for reopening an assessment are recorded. In the case before us, assessee has categorically objected to the reasons that the facts by which reopening are done are wrongly mentioned. While disposing of this ob....

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....icular year because of his failure to disclose fully and truly all material facts. Meaning whereby reasons must be on a stand alone basis and it should have direct link or nexus between materials coming to the knowledge of the Assessing Officer because of which he is forming belief that income has escaped assessment. 9. In the present case when we perused and examine the documents placed before us namely reasons recorded, objections raised by the assessee and the order of the Department disposing of those objections, we do not find any direct nexus which is brought on record by the Department that on these factors the Assessing Officer believes or Assessing Officer necessitates that there is an income escaping assessment. Most of the wor....