TaxTMI 
TaxTMI 
2022 (2) TMI 1138
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....on information received by him from the DDIT(Inv.) and not on his own satisfaction amounts to reopening on borrowed satisfaction in clear breach of settled position of law rendering the reassessment proceedings without jurisdiction." 2. The assessee has filed return of income on 30.09.2011 declaring total income of Rs. 1,66,73,810/-. Owing to the search conducted u/s. 132 of the Income Tax Act, 1961 notice u/s. 153A has been issued to the assessee. The assessee filed letter dated 07.02.2014 that the return filed u/s. 139(1) dated 30.09.2011 may be treated as return filed in response to notice u/s. 153A. Assessment was completed on 31.03.2014 by making addition of Rs. 1,05,918/- at an assessed income of Rs. 1,67,79,730/-. 3. Subsequent....
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.... reopening. It is not even clear whether the assessee has received entries pertaining to loans or purchases. The details of the report wherein it was alleged that the assessee has received bogus entries could not be made as a basis for reopening. The existence of belief has to be bonafide and has to be based on material which is relevant hence specific in nature. The basis of the belief should be discernable from the facts on record and ascertainable with regard to the escapement of income. 7. Joshi Vs. Income-Tax Officer and Another, 2010 (324) ITR 154 (Bom.) and it was held as under: "Section 147 provides that if the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assess....
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....e was reason to believe, within the meaning of section 147 that income has escaped assessment, must be determined with reference to the reasons recorded by the Assessing Officer. The reasons which are recorded cannot be supplemented by affidavits. The imposition of that requirement ensures against an arbitrary exercise of powers under section 148." 8. In Hindustan Lever Ltd. vs. R.B. Wadkar, [2004] 268 ITR 332 (Bom), a Division Bench has opined thus: ".... the reasons are required to be read as they were recorded by the Assessing Officer. No substitution or deletion is permissible. No additions can be made to those reasons. No inference can be allowed to be drawn based on reasons not recorded. It is for the Assessing Officer to ....
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....tion 148 of the Act. The reasons and the information referred is extremely scanty and sudden jump to the conclusions. There is no reference to any specific document except the Annexure which cannot be regarded as material or prima facie evidence to establish the link to point out escapement of income. The Annexure is not a pointer and does not indicate escapement of income per se. Hence, going through the reasons recorded of the AO on 10.10.2014 and the judicial pronouncements mentioned above, in the absence of any tangible material to establish the escapement of income for assessment, we hold that the action of the AO issuing the notice u/s. 148 cannot be held to be legally valid. 10. Since, at the outset, the reopening has been held to....