2016 (9) TMI 254

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... disclosed income had escaped assessment due to failure on its part to provide particulars. If such wide margins were to be provided to the AOs, possibly, thousands of entries would lead to reopening of assessment of careless assessees. The link between the assessee’s returns and the amounts said to have escaped assessment had to be necessarily shown. Now, the opinion which led to the reopening of assessment nowhere shows that the assessee had in fact failed to report the transaction itself. In completely omitting to see this aspect, we are of the opinion that the ITAT fell into fundamental error of law. The question of law is accordingly answered in favour of the assessee and against the revenue. - ITA 291/2016 - - - Dated:- 22-8-2016 - .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... NG CONST. CLL 865230 10,00,000/- 10-FEB-01 TO CLEARING CONSTELL.C AP 865253 10,00,000/- In view of the totality of facts and findings of the investigation report, the person who have given credit entry in this case, have been proved to be men/parties of no creditworthiness. Therefore the aforesaid credit entries are squarely hit by section 68 of the IT Act. I therefore have reasons to believe that this amount of ₹ 20,00,000/- represents income of the assessee chargeable to tax which has escaped assessment for A.Y. 2001-02. The assessee appealed against the final reassessment order made by the AO .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sactions was subject to Section 143(3) assessment. The law as to the appropriateness of an order reopening assessments is now well settled by the ruling of the judgment in CIT v. Kelvinator India Ltd. 320 ITR 561. The Supreme Court has ruled that tangible material should be disclosed or forthcoming to persuade the AO to reopen the assessment and that the text of the statute in that regard as to the satisfaction that the assessee had failed to disclose particulars in the return which resulted in income escaping assessment, should be clear. In the present case, the opinion of the AO which is placed on the record discloses that his part of the order is entirely concerned with the transactions to which M/s. H.B. Relan and Company was exclu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X