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2024 (3) TMI 1158 - BOMBAY HIGH COURTReopening of assessment u/s 147 - Pro-Trade activity of Petitioner - reason to believe - as alleged Assessee had entered into sales/purchase of equity shares with or without actual delivery in recognized Stock Exchange and there are no details provided - mandation to have live link between the information received by AO and formation of his belief that income had escaped assessment HELD THAT:- Queries were raised and replies were sent itself indicates, as held in Aroni Commercials Limited [2014 (2) TMI 659 - BOMBAY HIGH COURT] once a query is raised during the assessment proceedings and assessee has replied to it, it follows that the query raised was a subject of consideration of the AO while completing the assessment. It is also not necessary that an assessment order should contain reference and/or discussion to disclose its satisfaction in respect of the query raised. Therefore, the reopening of the assessment, in our view, is merely on the basis of change of opinion of the AO from that held earlier during the course of assessment proceedings and this change of opinion does not constitute justification and/or reason to believe that income chargeable to tax has escaped assessment. AO in the reasons recorded does not even make an allegation that there was failure on the part of assessee to truly and fully disclose material facts. From the reasons as reproduced earlier, we are unable to cull down the factum of failure to disclose. The reason, in our view, does not indicate anything cogent or clear that in fact there was failure on the part of Assessee to truly and fully disclose all material facts necessary for its assessment. There is no live link, which is a sine qua non between the material before the AO in the present case and the belief which he has to form regarding escapement of income. We are satisfied that the jurisdictional conditions have not been met and the reassessment proceedings are nothing but a ‘change of opinion’. This ‘change of opinion’ does not constitute justification and/or reasons to believe that income chargeable to tax has escaped assessment. Decided in favour of assessee.
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