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TMI Blog2014 (12) TMI 1168X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of ₹ 50 lakhs was given to the Managing Director of the assessee. There may be hundred of Malik in Kannauj but on the basis of this dumb document, the reopening of assessment in the hands of the assessee is not permissible. Moreover, the searched party has also examined Shri. Sohanraj Gupta and the statement is also placed on record and at nowhere Shri. Sohanraj Gupta has deposed about payment of ₹ 50 lakhs to the assessee. In the absence of any relevant material, the reopening of assessment in the hands of the assessee is not proper. - Decided in favour of assessee - ITA No. 388/LKW/2013 - - - Dated:- 10-12-2014 - Sunil Kumar Yadav (Judicial Member) And A. K. Garodia (Accountant Member) For the Petitioner : R. K. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cated and the order of the Assessing Officer restored. 2. The facts in brief borne out from the record are that during the course of search conducted upon Shri. Sohanraj Mehta, C F of RMD Gutkha group in Bangalore, statement of account was seized in which there was an entry of ₹ 50 lakhs in the name of Malik Kannauj. This entry was interpreted by the Revenue as this amount was given to Shri. Abdul Malik, MD of the assessee-company. On the basis of seized documents, the Assessing Officer has formed a belief in the assessee's case that the income chargeable to tax has escaped assessment, as this amount was not shown by the assessee in its books of account. Accordingly a notice under section 148 of the Income-tax Act, 1961 (herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts and we find that there is a debit entry of ₹ 50 lakhs in the name of Mlik Kannauj, but this entry does not indicate that the amount of ₹ 50 lakhs was given to the Managing Director of the assessee. There may be hundred of Malik in Kannauj but on the basis of this dumb document, the reopening of assessment in the hands of the assessee is not permissible. Moreover, the searched party has also examined Shri. Sohanraj Gupta and the statement is also placed on record and at nowhere Shri. Sohanraj Gupta has deposed about payment of ₹ 50 lakhs to the assessee. In the absence of any relevant material, the reopening of assessment in the hands of the assessee is not proper. The ld. CIT(A) has given valid reasons while holding th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med at the dictates of others or on suspicion, conjectures or surmises. 5.1.7 In the instant case, in my considered view, the A.O. had no material before him which could link the said payment to the appellant company. The reasons to believe in the case have been recorded on irrelevant material. On the basis of such material, no prudent man could have formed the belief that income had escaped asstt. in the hands of the appellant company. Accordingly, I hold that the very assumption of jurisdiction by the A.O. under section 147 of the Act was illegal and, therefore, any asstt. framed pursuant to such illegality cannot be sustained. Thus, the whole asstt. framed u/s 147 is hereby annulled, While taking this view, I am fortified by the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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