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TMI Blog2023 (9) TMI 1042X X X X Extracts X X X X X X X X Extracts X X X X ..... onduct roving inquiries. The AO in his letter dated 15th September 2014 and 14th August 2014 respectively rejecting the objections raised by Petitioners, has given fresh reasons not included in the reasons as recorded under Section 148(2) of the Act, which Courts have time and again held cannot be done. These reasons cannot be improved upon and/or supplemented much less substituted by affidavit and/or oral submissions. Just because some information has been received from the Investigation Wing, do not entitle Respondents to re-open assessment. The reasons must be founded on the satisfaction of AO that income chargeable to tax has escaped assessment. Once that is not to be found, then, the impugned notice cannot be sustained. What we f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15th September 2014 and 14th August 2014, respectively. The reasons to believe indicate that the notices issued to Petitioners under Section 148 of the Act was at the behest of Assessing Officer ( AO ) of Crown Consultants Private Limited ( Crown ), mechanically and without application of mind. The reasons also indicate that because AO of Crown informed AO of both Petitioners that cash worth of Rs. 7,00,000/- had been deposited in the bank accounts of Petitioners and immediately the amount was transferred through cheque in the bank account of Crown and Petitioners were a director/family member of Crown, it was required to examine the case of assessee for Assessment Year 2007-2008 so that such unaccounted money could be brought to tax. The r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company viz. Crown, who introduced its unaccounted money in the name of Petitioners. The provisions of Section 147 of the Act cannot be pressed into service for the purpose of making an inquiry as to whether or not there is escapement of income chargeable to tax from assessment. The inquiry as regards escapement of income chargeable to tax has to precede the initiation of the proceedings under Section 147 of the Act and not follow the issue of notice under Section 148 of the Act. AO has issued the impugned notice under Section 148 of the Act mechanically and without application of mind at the behest of AO of Crown, whereas for the purpose of the initiation of proceedings under Section 147 of the Act, AO who issues the notice under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a notice under Section 148 of the Act seeking to re-open an assessment. These reasons cannot be improved upon and/or supplemented much less substituted by affidavit and/or oral submissions. Just because some information has been received from the Investigation Wing, do not entitle Respondents to re-open assessment. 6. The reasons must be founded on the satisfaction of AO that income chargeable to tax has escaped assessment. Once that is not to be found, then, the impugned notice cannot be sustained. What we find is that there are no reasons to believe but, only reasons to suspect. Hence, re-opening of assessment is not satisfactory. 7. In the circumstances, we hereby quash and set aside the impugned notices dated 21st March 2014 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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