2022 (1) TMI 332

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....the reopening of the assessment is bad in the eyes of law and (b) the learned CIT(A) has erred in disallowing the loss of Rs. 12,05,353/-. 3. We take the first fold of grievances. The brief facts of the case are that the assessee has filed her return of income electronically on 27.09.2009 declaring total income at Rs. 2,21,560/-. According to the Assessing Officer, he has received information from ADI (Inv.), Unit-1(3), Ahmedabad exhibiting the fact that the assessee has entered into transactions in different segments through Amrapali Capital and Finance Service Ltd where she indulged in Client Code Modifications and, therefore, her share/demat transactions and any other such financial transactions/activities are needed to be examined and ....

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....learned Counsel for the assessee, the learned Sr. DR has filed written submissions. He annexed the material which has been transmitted by the ADIT (Inv) to the Assessing Officer for strengthening the case of the Assessing Officer. He relied upon the judgment of the Hon'ble Gujarat High Court in the case of Peass Industrial Engineers (P.) Ltd. vs. DCIT, reported in 73 taxmann.com 185. On the strength of the judgment, it was contended by the learned Sr. DR that at the stage of forming a belief that an assessment is required to reopen, the Assessing Officer is supposed to form a prima-facie opinion on the basis of information available with him and he is not required to establish the fact of escapement of income. In brief, the submission raise....

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....rgeable to tax had escaped assessment to that extent, for AY 2009- 10, within the meaning of Section 147 of the Act. Hence, in my opinion, this is a fit case for re-opening of assessment u/s 147 of the I.T. Act, 1961. I therefore, issue notice u/s 147 of the I.T. Act, 1961. Sd/- (BABU GEORGE) Income Tax Officer, Ware-5, Gandhinagar" 8. Section 147 of the Income-Tax Act contemplates that "if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of Sections 148 to 153, assess or re-assess such income..............". A Perusal of the aforesaid reasons would reveal that there is no application of mind at the end of the Assessing Of....

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....osition cannot be amplified by inducting fresh information before the appellate authority to justify the formation of belief even if no such live nexus is available between the formation of belief vis-à-vis information. The learned Sr. DR relied upon the judgment of Hon'ble Gujarat High Court in the case of Peass Industrial Engineers (P.) Ltd. Vs. DCIT (supra), but the facts are altogether different. In this judgment also the Hon'ble Court has emphasized on the point that if substantial new material is found in the form of information on the basis of which the Assessing Officer can form a belief that the income of the assessee has escaped assessment, then it is always open for the assessing authority to reopen assessment. There is no....