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TMI Blog2016 (2) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... 147 of the Act in as much as they do not refer to any documents or statement, etc., which would prima-facie establish a link between the bogus nature of the impugned purchases and consequential escapement of income. - Decided in favour of assessee. - ITA No. 136/MUM/2015, C.O.No.139/Mum/2015 - - - Dated:- 29-2-2016 - SHRI G.S.PANNU, ACCOUNTANT MEMBER For the Appellant : Shri Vishwas Jadhav For the Respondent : Shri Dharmesh Shah ORDER PER G.S. PANNU,AM: The captioned cross proceedings are preferred by the Revenue and the assessee pertaining to the assessment year 2008-09 and are directed against the order passed by the CIT(Appeals) -19, Mumbai dated 01.10.2014, which in turn has arisen from an order passed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stly, the assessee contended that the issuance of notice under section 148 of the Act was bad in law; and, secondly, the assessment finalized under section 143(3) r.w.s. 147 was liable to be quashed. On facts also, the addition made was sought to be assailed. 3. The CIT(Appeals) considered the reasons recorded by the Assessing Officer for reopening under section 148 of the Act and held that the same did not reflect any application of mind and were, therefore, contrary to the legal position. Accordingly, the initiation of proceedings by issuance of notice under section 147/148 of the Act was found to be ab-initio invalid. The CIT(Appeals) accordingly, quashed the reassessment proceedings. In this view of the matter, the Revenue is in appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dients required to initiate reassessment proceedings under section 147 of the Act is formation of belief by the Assessing Officer that certain income chargeable to tax had escaped assessment. It is also a trite law that the formation of such belief should be discernible from the material and information on record when the Assessing Officer records his reasons. In other words, it is an accepted position of law that there should be a live link between the reasons and the evidence/material available with the Assessing Officer. In the present case, the CIT(Appeals) has extracted the reasons recorded by the Assessing Officer in para 3.2 of his order. A reading of such reasons reveal that the Assessing Officer refers to information received from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(Appeals), the initiation of proceedings under section have been rightly held to be ab-inito invalid. The order of the CIT(Appeals) on this aspect is hereby affirmed. 6.3 So far as the arguments put-forth by the Revenue are concerned, the same are not tenable having regard to the facts of the present case. 7. In the result, appeal of the Revenue is dismissed. 8. So far as the Cross Objection filed by the assessee is concerned, the same relates to the merits of the additions made by the Assessing Officer, which do not survive as I have already affirmed the action of the CIT(Appeals) of quashing the reassessment proceedings. 9. In the result, the appeal of the Revenue as well as Cross Objection of the assessee are dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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