2019 (11) TMI 548

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....It is well settled Law that validity of the reopening of the assessment is to be determined with reference to the reasons recorded for reopening of the assessment. Learned Counsel for the Assessee filed copy of the reasons for reopening of the assessment at page-38 of the paper book which reads as under : Annexure-A "M/s. Vibhut Builders &Engg. Pvt. Ltd. (PAN AALCV7326D) ASSESSMENT YEAR 2009-10 In this case, information was received from the office of ADIT (Inv.), Unit-II, Ghaziabad vide its Letter F.No.ADIT(Inv.)-II/6ZB/STRs/2011-12 dated 23.03.2012 that in this case, a STR No. 1000003767 was received and in his report, the ADIT (Inv.)-II, Ghaziabad has reported as under : "The assessee has undertaken off market transactions of 7000....

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....09 may be treated as return have been filed in response to the notice under section 148 of the I.T. Act, 1961. The A.O. also in the impugned order has mentioned that assessee has filed return of income on 26.09.2009. It is, therefore, clear that A.O. has recorded wrong reasons for reopening of the assessment that assessee has not filed return of income for A.Y. 2009-2010, this was the sole basis for reopening of the assessment. Thus, the A.O. recorded incorrect facts in the assessment order. Therefore, reopening of the assessment is clearly invalid and bad in law. I rely upon Judgment of Hon'ble Punjab & Haryana High Court in the case of Atlas Cycle Industries 180 ITR 319 in which it was held that "initiation of re-assessment proceedings i....

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....yes - Whether, however, if after issuing a notice under section 148, he accepts contention of assessee and holds that income, for which he had initially formed a reason to believe that it had escaped assessment, has, as a matter of fact, not escaped assessment, it is not open to him to independently assess some other income; if he intends to do so, a fresh notice under section 148 would be necessary, legality of which would be tested in event of a challenge by assessee - Held, yes Words and phrases : The words 'and also' as occurring." 3.2. I also referred to Judgment of Hon'ble Delhi High Court in the case of Ranbaxy Laboratories Ltd., vs. CIT [2011] 336 ITR 136 (Del.) in which it was held as under : "The assessee-company was ....

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....g Officer proceeds to assess, reassess or re-compute escaped income. Section 147 mandates recording of reasons to believe by the Assessing Officer that the income chargeable to tax had escaped assessment All these conditions were required to be fulfilled to assess or reassess the escaped income chargeable to tax. Under Explanation 3 if during the course the proceedings the Assessing Officer comes to the conclusion that some items have escaped assessment, then notwithstanding that those items were not included in the reasons to believe as recorded for initiation of the proceedings and the notice, he would be competent to make assessment of those items. For every new issue coming before the Assessing Officer during the course of proceedings o....