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TMI Blog2023 (5) TMI 1041X X X X Extracts X X X X X X X X Extracts X X X X ..... and reopening the assessment proceedings on the basis of the wrong premise is correct. CIT (A) has properly appreciated the matter and referred to case laws. His order does not need any interference on our part. Hence, we uphold the order of ld. CIT (A). As regards merits of the case, we note that reopening has been found invalid and grounds on merits are only academic interest - Appeal of the Revenue is dismissed. - ITA No. 5212/Del./2019 - - - Dated:- 27-4-2023 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER And SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER For the Assessee : Shri Sushil Maheshwari, CA For the Revenue : Shri Gurpreet Singh, Sr. DR ORDER PER SHAMIM YAHYA , ACCOUNTANT MEMBER : This appeal by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the same before the ld. CIT (A) on account of both validity and merits of the case. Ld. CIT (A) decided the issue of reopening in favour of the assessee, hence he did not adjudicate upon the merits of the case. 5. Against this order, Revenue is in appeal before us. We have heard both the parties and perused the records. 6. The reasons recorded in this case are as under :- Sub : Reasons for reopening of assessment u/s 147 in the case of M/s. Yamuna Builders Pvt. Ltd. for the AY 2009-10 - regarding The Asstt. Commission of Income tax, Central Circle 26, New Delhi vide letter No.ACIT/CC-26/20 IS-16/2020 dated 21st March 2016 (received in this office on 28th March 2016) has informed that a search seizure operation was carri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant. From the reasons recorded, it reflects that AO was in possession of information received from Asstt. CIT, Central Circle- 26 that there was a search and seizure operation carried out in the case of AKN Group wherein a hard disk was found at the residential premises of Shri Naresh Gupta, Deed Writer Advocate wherein it was mentioned that the appellant M/s. Yamuna Builders Pvt. Ltd had paid Rs. 1.95 crore in cash to Shri Narpat Chand Jain during F.Y. 2008-09 (A.Y. 2009-10) to purchase a property. It is further reflected from the reasons that while recording the satisfaction in the 3rd paragraph, AO has changed the figure of cash payment from Rs. 1.95 crore to 1.50 crores. It is further revealed from the assessment order that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is essential that before taking action to reopen the assessment, the requirements of the law should be satisfied. d) The reasons to believe must have a material bearing on the question on escapement of income. It does not mean a purely subjective satisfaction of the assessing authority; the reason be held in good faith and cannot merely be a pretence. e) The reasons to believe must have a rational connection with or relevant bearing on the formation of the belief. Rational connection postulates that there must be a direct nexus or live link between the material coming to the notice of the AO and the formation of belief regarding escapement of income. 4.2 It is further decided by Hon'ble Court in the case CIT vs. Kelvi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iating the reassessment proceedings in the case of appellant nor there was a proper application of mind on his part. Whatever belief -has been formed by him for recording the satisfaction, is based on wrong facts in respect of amounts/transactions as well as the names of persons. The AO has merely taken that information into consideration and arrived at conclusion that the appellant has escaped the assessment of income even without caring that the figures and names mentioned by him are correct or not. This shows that the conduct of AO has been very casual and arbitrary. As held by Hon'ble Jurisdictional High court in the case Pro CIT vs Meenakshi Overseas Pvt. Ltd 395 ITR 677, the reopening of assessment u/s 147 of IT Act is a pot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw and without jurisdiction and deserve to be quashed. I, therefore, quash the reassessment proceedings and allow the grounds taken by the appellant. 5. Since the reassessment proceedings in the case of appellant have been quashed, as above, the grounds taken by appellant on merit remain academic only, therefore, not required to be adjudicated. The grounds taken by appellant on merit are allowed for statistical purposes. 8. We have heard both the parties and perused the records. We note that the ld. CIT (A) has carefully taken into account the defects in the reasons recorded. The reasons recorded was that AO was in possession of information received that in a search and seizure operation carried out in the case of AKN Group, a h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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