TaxTMI 
TaxTMI 
2025 (11) TMI 1888
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....s on merits. The Ld. Counsel for the assessee submitted that he would assail the legal ground first and if the said legal ground is answered affirmative, then the grounds on merits shall become academic only. 3. In this case, at the very outset, the Ld. Counsel for the assessee has assailed legal validity of the reassessment proceedings conducted by the department u/s. 147/148 of the Income Tax Act, 1961 ( for short 'the Act'). It was submitted by the Ld. Counsel that as per the reasons recorded u/s. 148(2) of the Act, there is no independent satisfaction arrived at by the A.O in the "reasons to believe" that income of the assessee chargeable to tax has escapement assessment in respect of the assessee. In fact, there is no whisper in the....
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....rd. In this case of the assessee was reopened u/s. 147/148 of the Act as per information of the Commercial Tax Department, Chhattisgarh i.e. on borrowed satisfaction and no satisfaction regarding escapement of income recorded by the A.O in the "reasons to believe" as per his independent application of mind. It is settled legal position that the reassessment order shall be vitiated so as to be bad in law and void ab initio where the case of an assessee was reopened without any independent application of mind or on borrowed satisfaction by the A.O. In fact, in the "reasons to believe", there is no whisper about any satisfaction recorded by the assessee regarding escapement of income in respect of the assessee. 7. In such scenario, we find ....
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....lied his mind to the information received by him from the DDIT (Inv.). The Assessing Officer has merely issued a re-opening notice on the basis of intimation regarding re-opening notice from the DDIT (Inv.) This is clearly in breach of the settled position in law that re-opening notice has to be issued by the Assessing Office on his own satisfaction and not on borrowed satisfaction." 8. Further, the Hon'ble High Court of Delhi in the case of Principal Commissioner of Income-tax-6 v. Meenakshi Overseas (P.) Ltd., [2017] 82 taxmann.com 300 (Delhi) has held that where reassessment was resorted to on basis of information from DIT (Investigation) that assessee had received accommodation entry but and there was no independent application of mi....
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....upreme Court had explained that expression "reason to believe" would mean justification to know or suppose that income had escaped assessment. While, it is correct that it is not necessary for the Assessing Officer to finally ascertain whether income had escaped assessment, nonetheless, the Assessing Officer must have sufficient cause to believe that it has. 25. In the present case, as may be seen, there is no "close nexus" or "live link" between tangible material and the reason to believe that income has escaped assessment. The information received from the Investigating Unit of the Revenue cannot be the sole basis for forming a belief that income of the assessee has escaped assessment. Having received information from the Investi....
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....2 - reg. Please refer to the above. The Commercial Tax Department, Chhattisgarh has detected and identified the concerns in whose name bogus sale bills have been issued. Such bogus sale bills were detected with the help of specialized software of the Commercial Tax Department. After detection of such bogus bills, they were confirmed through enquiry and spot verification by the Commercial Tax Department. The findings on such bogus billing have been shared to the various intelligence and investigating agencies in the meeting of REIC, Raipur on various dates. As per these findings, the beneficiaries have taken bogus purchase bills from bogus dealers. Thus, the beneficiaries have suppressed their total income by way of debiting bogus purc....