9911796707
TMI Blog2022 (10) TMI 895X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Moser Bare India Ltd. [ 2012 (12) TMI 456 - DELHI HIGH COURT] .There was material in the hands of the AO relating to assessment year under consideration for arriving at the belief that the Capital gains declared by the assessee in the return of income filed for A.Y. 2013-14 is bogus in nature.There is no live link between the material in the hands of the assessee and the belief entertained y him. AO has entertained such a belief only on the suspicion and surmises and not on the basis of any material. Accordingly hold that the reopening of assessment is bad in law. Accordingly we quash the impugned orders passed by the tax authorities on the legal issue. Appeal filed by the assessee is allowed. - I.T.A. No. 1920/Mum/2022 - - - Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... escaped assessment. Accordingly, the learned AR submitted that there was no live nexus between the information received and the belief formed by the Assessing Officer. Accordingly he submitted that the reopening of assessment is bad in law. 3. The learned DR submitted that the assessee has challenged the validity of reopening of assessment before the learned CIT(A). but the same has been rejected by the learned CIT(A) on the ground that the foundation for reopening the assessment is based on the information received from the Investigation Wing and hence reopening is valid. 4. I have heard the rival contentions and perused the record. With regard to the reasons for reopening, I notice that the Assessing Officer has observed as under i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see in A.Y. 2013-14. 6. It is well settled principle of law that the material relied upon by the Assessing Officer should have a live or proximate link with escapement of income. It was so held by Hon'ble Delhi High Court in the case of Amsa India Pvt. Ltd. Vs. CIT (WTC 5143/2005) and also in the case of Moser Bare India Ltd. Vs. DCIT (WPC 7677/2011 dated 6.1.2012). In the fact and circumstances of the case, I find that there was material in the hands of the Assessing Officer relating to assessment year under consideration for arriving at the belief that the Capital gains declared by the assessee in the return of income filed for A.Y. 2013-14 is bogus in nature. Further, there is no live link between the material in the hands of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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