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TMI Blog2025 (2) TMI 404X X X X Extracts X X X X X X X X Extracts X X X X ..... ment. The crucial link between information made available to the AO and the formation of belief was absent. The reasons to believe recorded were not reasons but only conclusions and a reproduction of the conclusion in the Investigation Report received from the ADIT (Inv.) and held it to be a borrowed satisfaction. In the case on hand also AO merely reproduced the report of ADIT (Inv.) and came to the conclusion that income had escaped assessment. To justify this action he also noted that in the return filed by the assessee for the AY 2012-13 the assessee has reported income from other sources only to the extent of Rs. 6,10,072/-. However, the return filed by the assessee clearly show that apart from income from other sources of Rs. 6,10,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Act, 1961 and not u/s 147/143(3) of the Income Tax Act, 1961. 4. That the assessee submitted the statements of account of Krishan Bans Bahadur. The receipt and payment of Rs. 10,00,000/- were made through banking channels. No effort was made by the Assessing Officer confirm the transaction with the concerned bank. 5. That the confirmation of statement along with the copy of PAN Card and address of PAN India Motor (P) Ltd. in support of receipt of Rs. 15,00,000/- was also submitted. The credit represented the refund of amounts due from PAN India Motor (P) Ltd. The Ld. Assessing Officer has himself admitted that loan of Rs. 70,25,04,002/- and Rs. 12,15,00,000/- were given to PAN India Motor (P) Ltd. during the year 2009-10 and 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Delhi High Court in the case of PCIT Vs. G&G Pharma India Ltd. (384 ITR 147), CIT Vs. Sfil Stock Broking Ltd. (324 ITR 285) (Del.), Sarthak Securities Company Pvt. Ltd. Vs. ITO (329 ITR 110) (Del.), Signature Hotels Pvt. Ltd. Vs. ITO (338 ITR 51) (Del.) and CIT Vs. Insecticides (India) Ltd. (357 ITR 330) (Del.). 3. Ld. Counsel for the assessee further referring to page 31 of the Paper Book submits that for the AY 2012-13 the assessee filed return declaring income from other sources at Rs. 6,10,072/- and exempt income u/s 10 being dividend from shares at Rs. 15,26,571/-. Therefore, the observation of the Assessing Officer in the reasons that the assessee has shown income from other sources only at Rs. 6,10,072/- and therefore the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the addition cannot be sustained. 5. Ld. DR strongly supported the orders of the authorities below. 6. Heard rival contentions. On perusal of the reasons for reopening of assessment suggest that the assessment was reopened by the Assessing Officer based on the information received from the office of Assistant Director of Income Tax (Inv.) in the case of the assessee. The report of the Assistant Director of Income Tax (Inv.) on which the Assessing Officer relied on suggest that summons were issued to the assessee and also to one Shri Manpreet Singh Chadha for personal deposition and Shri Manpreet Singh Chadha appeared in person and filed information. However, the assessee did not appear in person and therefore the assessee did not explain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts in this case the Assessing Officer was of the view that income has escaped assessment. 7. In the case of PCIT Vs. Meenakshi Overseas Pvt. Ltd. the Hon'ble Jurisdictional High Court held that mere reproduction of Investigation report in reasons recorded initiation of reassessment proceedings u/s 148 is illegal in the absence of link between tangible material and formation of belief that income has escaped assessment. The Hon'ble High Court in this case held that the crucial link between information made available to the Assessing Officer and the formation of belief was absent. The reasons to believe recorded were not reasons but only conclusions and a reproduction of the conclusion in the Investigation Report received from the ADIT (Inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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