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TMI Blog2019 (10) TMI 1290X X X X Extracts X X X X X X X X Extracts X X X X ..... the reasons which are recorded by the A.O. for reopening the assessment are the only reasons which can be considered and no substitution or deletion is permissible. The reasons which are recorded by the AO for reopening an assessment are the only reasons which can be considered when the formation of the belief is impugned. Reading of the reasons for re-opening of the assessment, it is seen that the notice has been issued and reassessment has been sought for verification of the cash and cheque transactions in the bank account of the assessee. In the present case, notice for re-opening of the assessment u/s 147 is not as per the mandate of Sec.147 and therefore the re-opening is not permissible. Notice issued for reopening has to be set as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised the following grounds : 1. The reassessment proceedings initiated by issuing notice u/s 148 of the Act are ab-initio void, invalid and unsustainable in law. The Assessing Officer has reopened the assessment merely for verification of transactions of credits in the bank accounts of the assessee. The reassessment proceedings cannot be initiated for verification. In the reasons recorded for reopening the assessment, the Assessing Officer has not mentioned as to what income that was chargeable to tax has escaped assessment and what is the basis for that. 1.1 The Ld. Commissioner of Income Tax (Appeals) has erred in holding that the Assessing Officer had reasons to believe that income has escaped within the meaning of Section 147 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o fully and truly disclose all material facts necessary for assessment. He submitted that in the present case in the reasons recorded for re-opening, there is no allegation on the part of the assessee of failure to disclose material facts and therefore, the condition of 1st proviso of Sec.147 of the Act has not been satisfied. He pointed to the copy of the computation of income which is placed at Page 2 of the Paper Book and pointed to the income from rent shown by the assessee. He submitted that the AO in the re-assessment order has held the income to be under the head of income from other sources and that there is no material to indicate that the income was assessable under income from other sources. He further submitted that the re-openi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment year. In such a scenario, as per the 1st proviso to Sec.147 of the Act, no action for initiation of re-assessment proceedings for A.Y. 2009-10 could have been taken unless the AO had reason to believe that income chargeable to tax had escaped the assessment for a reason of failure on the part of assessee to disclose fully and truly all material facts necessary for assessment. The reading of the reasons placed by the assessee in the Paper Book shows that there is not even an allegation that there was any failure on the part of the assessee to disclose any material facts which lead to any income chargeable to tax had escaped the assessment. Further, even on the reading of the reasons recorded, it cannot be said that it suggests about an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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