2025 (12) TMI 72

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.... it against the order dated 30.12.2018 passed u/s 143(3)/147 of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the ITO, Ward 18(3), New Delhi (hereinafter referred to as the Ld. AO). 2. Heard and perused the record. It was ground no. 1 of the appeal which has been first argued submitting that reopening was not in accordance with law yet same was sustained by ld. CIT(A). Ld. Counsel has submitted that the basis for the validity of any action u/s 147/148 of the Act has to be some 'tangible, substantive and specific belief' that the income of a particular assessee in question has escaped assessment. The information on the basis of which such an action has been taken should be specific in relation to the particular assessee.....

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..... 26.94 lakhs. It was, on that basis concluded that the transactions, allegedly, appeared to be sham, wherein the Appellant Company had, with the help of some perceived paper/shell companies, obtained shares in the said companies at a value lesser than the fair market value of such shares. 2.2 Ld. Counsel submitted that a review of the reasons for issuing the impugned notice u/s 147/148 of the Act for "alleged escapement of income" would reveal that they merely relied upon the information conveyed to the Ld Assessing Officer from the Investigation Wing which has not been independently verified by any degree of application of mind or conducting any enquiries. The Ld. Assessing Officer has merely reproduced the information received from th....

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....rmation wherein the information with regard to purchase of shares of the companies referred above has been mentioned and the AO also mentions investigation wing opinion that there is possibility of applicability of provision of Section 56(vii) of the Act or any provision of Income Tax Act with respect to the impugned transactions of purchase and sale of shares, which allegedly introduced unaccounted money into group concern. 4.1 However, what is relevant is that after reproducing the details of information then while mentioning in para 3, 'the analysis of information' the AO mentions that the information received from Investigation Wing is required to be examined for the purpose of findings of 'source of the purchase of share worth Rs. 5....