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TMI Blog2021 (11) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... inkage of the assessee has been established with the information received from investigation wing and the reopening is based merely on borrowed satisfaction. The reasons were mere reasons to suspect and not the reasons to believe that the income had escaped assessment. This being the case, the reopening could not be held to be valid in the eyes of law since the jurisdictional requirements were not fulfilled. We order so. The assessment framed by Ld. AO is bad in law and accordingly, quashed. - I.T.A. No. 1646/Mum/2019 - - - Dated:- 28-10-2021 - Mahavir Singh , Vice President And Manoj Kumar Aggarwal , Member ( A ) For the Appellant : Pramod Kumar Parida , Ld. AR For the Respondents : Brajendra Kumar , Ld. Sr. DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urisdiction test and (iii) that the notice u/s. 143(2) dated 16.12.2016 was issued beyond limitation period (due date 30.09.2016) as the same was served on 19.12.2016, further affecting jurisdictional tests. 2. The Ld. Counsel for assessee (AR), drawing our attention to the reasons recorded by Ld. AO to reopen the case of the assessee, submitted that there was no independent formation of belief that the income had escaped assessment. For the same, Ld. AR relied on the decision of Hon'ble High Court of Bombay in the case of Pr. CIT V/s. M/s. Shodiman Investments Pvt. Ltd. (ITA No. 1297 of 2015 dated 16/04/2018) rendered under similar factual matrix. The Ld. Sr. DR, on the other hand, supported the assessment framed by Ld. AO. Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case of the assessee as follows:- The return of income was filed on 18-02-2009 declaring the returned income at ₹ 29,79,840/-. Information was received from the office of the ADIT(Inv.) Unit-1(3), Ahmedabad vide letter No. ADIT(lnv.)1(3)/ADH/CCM/Dissemination/e-mail/15-16 dated 11-03-2016 regarding tax evasion through client code modification during the F.Y. 2008-09. As per the survey report prepared by the ADIT(Inv.) Unit 1(3), Ahmedabad on the basis of the data received from NSE, it has stated that CCM has been used as a tool for tax evasion. The survey report comprises the list of beneficiaries of CCM, wherein the assessee have taken losses of ₹ 1,00,000/- and above and have shifted out profits of ₹ 1,00,000/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form the basis of re-opening Assessment and its reasons which would evidence the linkage/nexus to the conclusion that income chargeable to tax has escaped Assessment. This is a settled position as observed by the Supreme Court in S. Narayanappa v/s. CIT 63 ITR 219, that it is open to examine whether the reason to believe has rational connection with the formation of the belief. To the same effect, the Apex Court in ITO v/s. Lakhmani Merwal Das 103 ITR 437 had laid down that the reasons to believe must have rational connection with or relevant bearing on the formation of belief i.e. there must be a live link between material coming the notice of the Assessing Officer and the formation of belief regarding escapement of income. If the aforesa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Tribunal cannot be found fault with. This view of the Tribunal is in accordance with the settled position in law. 16. Therefore, the question as framed does not give rise to any substantial question of law. Thus, not entertained. 17. Accordingly, Appeal dismissed. No order as to costs. We find that the ratio of aforesaid decision squarely applies to the facts of the case under consideration. No linkage of the assessee has been established with the information received from investigation wing and the reopening is based merely on borrowed satisfaction. The reasons were mere reasons to suspect and not the reasons to believe that the income had escaped assessment. This being the case, the reopening could not be held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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