2021 (6) TMI 812

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....e's favour. It needs be referred that consistently over a period of time, ld. AR had been requesting for adjournment on the ground that the ITAT is seized of a similar ground on same set of facts and circumstances as in the present case in a connected appeal. The order was stated to be awaited. Copy of this order is now available. Copy of that order dated 24.05.2021 in ITA No. 54, 55 and 57/CHD/2020 in the case of M/s. Fateh Softech Pvt. Ltd., Chandigarh has been filed and is available at Paper Book page 43 to 59. Accordingly, time had been given to the department to consider whether ground No. 2 stated to be covered in assessee's favour can be said to be covered by this order of the ITAT. In this background, the appeal came up for ....

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....stances of the case, admittedly the reasons for re-opening the assessment by issuance of notice u/s. 147/148 are as under: Reason for re-opening the case u/s. 147/148 of the Income Tax Act, 1961 An information was received from the Deputy Director of Income Tax (Investigation)-II, Chandigarh vide his office letter No. 3575 dated 02.03.2015 that above noted assessee had been evading rental income from House Property. On perusal of return of the said assessee company for A.Y. 2008-09, it is observed that fixed assets have been shown at Rs. 5,45,40,085/- but no income under any head has been shown except agriculture income of Rs. 1,69,000/- Therefore, I have reason to believe that the rental income from the ....

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....d any income from the said property except agriculture income of Rs. 1,20,00,000/-. This, in my view is a vague reason. Merely possession of a fixed asset does not mean that the assessee might have earned any income from the said asset which would have escaped assessment. Admittedly the assessee owns agricultural land where upon certain construction has been made by the assessee. It has been used for its own purposes. The reasons recorded by the Assessing Officer do not disclose that the assessee has used any of his assets for any business or rental purposes. The formation of belief by the AO in this case regarding the escapement of income of the assessee, in my view is based on just assumptions and presumptions and there was no reliable ma....