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TMI Blog2015 (1) TMI 819X X X X Extracts X X X X X X X X Extracts X X X X ..... e firm was formed by splitting up of an industrial undertaking already in existence. Thus the Assessing Officer could not be justified in stating that the assessee was formed by splitting up of an industrial undertaking. In any case, having not disallowed the claim of the assessee on this ground, the ground for reopening should also have failed. - Decided in favour of the assessee - TAX APPEAL NO. 1853 of 2006 - - - Dated:- 24-12-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. FOR THE APPELLANT : MR SUDHIR M MEHTA, ADVOCATE FOR THE RESPONDENT : MR MANISH J SHAH, ADVOCATE JUDGEMENT Per: K S Jhaveri: 1. This appeal u/s.160A of the Income Tax Act, 1961 is filed against the judgment and order dated 12.05.2006 passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law was the Appellate Tribunal right in holding that the reopening of the assessment was invalid on the basis of the outcome of the assessment? 5. We have heard learned counsel for both the sides and perused the material on record. It appears that the Assessing Officer had reopened the assessment on the ground that the activity of the assessee was not manufacturing activity and that the industrial undertaking was formed by splitting up the business which was already in existence. However, we find that there was nothing on record from which the Assessing Officer could have come to the conclusion that the assessee-firm was formed by splitting up of an industrial undertaking already in existence. There should have been something on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before completion of the said assessment and that the reopening has also not been challenged by the assessee before A.O. According to the CIT(A), it is very clear that at the time of assessment proceedings, the assessee had accepted the reasons for reopening and it has furnished the details called for by the Assessing Officer which were not furnished in the original assessment and, therefore, the Assessing Officer was justified in reopening the assessment. This, in our opinion, is not a correct approach. If the details are not available on record how could the Assessing Officer be satisfied about the fact that the assessee firm was formed by splitting up of an industrial undertaking already in existence. There must be something on record w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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