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“income escaping assessment”

ReassessmentSection 147Section 1471,518 judgments

The decision most relied on for income escaping assessment is CIT v. Kelvinator of India Ltd. (320 ITR 561), cited in 1,673 judgments on BharatTax.

Leading authorities on income escaping assessment

CIT v. Kelvinator of India Ltd.
320 ITR 561 · 2010 · Supreme Court
1,673
citing judgments

An Assessing Officer cannot initiate reassessment proceedings under Section 147 of the Income Tax Act based on a mere change of opinion. Reassessment is permissible only when there is fresh tangible material leading to the belief of income escapement, not merely a review of existing facts.

ACIT v. Rajesh Jhaveri Stock Brokers Pvt. Ltd.
291 ITR 500 · 2007 · Supreme Court
1,030
citing judgments

For initiating reassessment proceedings under Section 147, the Assessing Officer needs only prima facie material providing a reason to believe that income has escaped assessment. Conclusive proof or the sufficiency/correctness of the material is not required at the stage of issuing the notice under Section 148.

Raymond Woollen Mills Ltd. v. ITO
236 ITR 34 · 1999 · Supreme Court
862
citing judgments

For reassessment proceedings under Section 148, the Assessing Officer only needs prima facie material to have a reason to believe income has escaped assessment. Conclusive proof or evaluation of the sufficiency and correctness of such material is not required at the stage of issuing the notice.

CIT v. Sun Engineering Works (P) Ltd.
198 ITR 297 · 1992 · Supreme Court
814
citing judgments

A court's pronouncement derives its scope and color from the specific questions involved in the case, thus, due regard must always be given to the questions framed before the court when interpreting its judgment.

ITO v. Lakhmani Mewal Das
103 ITR 437 · 1976 · Supreme Court
721
citing judgments

For reassessment proceedings, the 'reason to believe' that income has escaped assessment must be based on some material and not mere suspicion, establishing a live link between the information and the belief. Furthermore, for reassessment beyond four years, there must be a specific finding of the assessee's failure to disclose fully and truly all material facts.

Hindustan Lever Ltd. v. R.B. Wadkar
268 ITR 332 · 2004 · High Court
695
citing judgments

The validity of reassessment proceedings initiated under Section 147, by issuing a notice under Section 148, must be judged solely on the reasons originally recorded by the Assessing Officer. These recorded reasons cannot be supplemented, improved upon, or modified at any later stage.

CIT v. Jet Airways (I) Ltd.
331 ITR 236 · 2011 · High Court
694
citing judgments

The Assessing Officer loses jurisdiction and the entire reassessment becomes invalid if no addition is made in respect of the income that formed the basis of the reopening. Explanation 3 to Section 147 does not permit assessing other escaped income unless an addition is made for the original income forming the reason to believe.

PCIT v. Meenakshi Overseas Pvt. Ltd.
395 ITR 677 · 2017 · High Court
471
citing judgments

Reassessment proceedings initiated solely based on an investigation wing/appraisal report, without the Assessing Officer's independent application of mind to form a 'reason to believe' that income has escaped assessment, are beyond jurisdiction, bad in law, and void ab initio.

Judgments citing income escaping assessment

ITO, Ward-1(4), Faridabad vs. Keshav Medichem P.Ltd, Faridabad

In the result, the appeal of the Revenue in ITA No

ITA 154/DEL/2020[2011-12]Status: DisposedITAT Delhi23 Mar 2023AY 2011-12

Bench: Shri N.K. Billaiya & Shri Anubhav Sharma

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Shri Anuj Garg, Sr. DR
Section 1Section 14Section 147Section 148Section 68

respect of an issue which is totally unconnected to the basis on which the Assessing Officer formed a reason to believe that income escaped assessment and issued a notice under section 148, it was open to him to issue a fresh notice by following sub-section (2) of section ... Airways (I) Limited [2011] 331 ITR 236 (Bom). We may also note that the heading of section 147 is "income escaping assessment" and that of section 148 "issue of notice where income escaped assessment". Sections 148 is supplementary and complimentary to section 147. Sub-section (2) of section 148 mandates

Ajmer Development Authority, Ajmer vs. CIT(Exemption)/ ITO (Exemption), Jaipur / Jodhpur

In the result, the stay application filed by the assessee is dismissed

ITA 89/JODH/2022[2012-13]Status: DisposedITAT Jodhpur22 Mar 2023AY 2012-13

Bench: Shri Kul Bharatshri Manish Borad

Section 143(3)Section 147Section 263

assessment and not from date on which order of reassessment has been passed - Held, yes Section 147 of the Income-tax Act, 1961 - Income escaping assessment - General - Whether where assessment is sought to be reopened only on one or more specific grounds and reassessment is confined to one or more

Sh. Nirbhay Trehan, Jammu vs. Dy. Commissioner of Income Tax Central Circle, Jammu

In the result, the appeals of the assessee bearing ITA Nos

ITA 184/ASR/2019[2013-14]Status: DisposedITAT Amritsar20 Mar 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 139Section 144Section 147Section 148Section 2Section 250

unless there is a reason to believe, rather than suspect, that an income has escapement assessment. The material before the AO must indicate income escaping assessment rather than desirability of further probe in the matter which may or may not lead to income escaping the assessment. The Hon’ble ITAT ... assessment by recording arbitrary, false and irrational reasons, not based on relevant material facts. The reasons recorded must point out to an income escaping assessment and the reasons cannot be arbitrary or irrational. Ground No 5 I.T.A. Nos. 182/Asr/2019 12 I.T.A. Nos. 183 & 184/Asr/2019 The AO has erred in opening

Sh. Nirbhay Trehan, Jammu vs. Dy. Commissioner of Income Tax Central Circle, Jammu

In the result, the appeals of the assessee bearing ITA Nos

ITA 183/ASR/2019[2010-11]Status: DisposedITAT Amritsar20 Mar 2023AY 2010-11

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 139Section 144Section 147Section 148Section 2Section 250

unless there is a reason to believe, rather than suspect, that an income has escapement assessment. The material before the AO must indicate income escaping assessment rather than desirability of further probe in the matter which may or may not lead to income escaping the assessment. The Hon’ble ITAT ... assessment by recording arbitrary, false and irrational reasons, not based on relevant material facts. The reasons recorded must point out to an income escaping assessment and the reasons cannot be arbitrary or irrational. Ground No 5 I.T.A. Nos. 182/Asr/2019 12 I.T.A. Nos. 183 & 184/Asr/2019 The AO has erred in opening

Smt. Bani Trehan, Jammu vs. Dy. Commissioner of Income Tax Central Circle, Jammu

In the result, the appeals of the assessee bearing ITA Nos

ITA 182/ASR/2019[2010-11]Status: DisposedITAT Amritsar20 Mar 2023AY 2010-11

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 139Section 144Section 147Section 148Section 2Section 250

unless there is a reason to believe, rather than suspect, that an income has escapement assessment. The material before the AO must indicate income escaping assessment rather than desirability of further probe in the matter which may or may not lead to income escaping the assessment. The Hon’ble ITAT ... assessment by recording arbitrary, false and irrational reasons, not based on relevant material facts. The reasons recorded must point out to an income escaping assessment and the reasons cannot be arbitrary or irrational. Ground No 5 I.T.A. Nos. 182/Asr/2019 12 I.T.A. Nos. 183 & 184/Asr/2019 The AO has erred in opening

Diya Infrastructure Pvt. Ltd., Delhi vs. ITO, Ward- 7(3), New Delhi

In the result, the appeal of the assessee is allowed in terms indicated herein above

ITA 1929/DEL/2019[2007-08]Status: DisposedITAT Delhi16 Mar 2023AY 2007-08

Bench: Shri Kul Bharat[Assessment Year : 2007-08] Diya Infrastructure Pvt.Ltd., Vs Ito, 1373, Rani Bagh, Shakur Ward-7(3), Basti, Delhi-110034. New Delhi. Pan-Aaccd3991L Appellant Respondent Appellant By Ms. Rano Jain, Adv. & Ms. Mansi Jain, Ca Respondent By Shri Sanjay Nargas, Sr.Dr Date Of Hearing 15.02.2023 Date Of Pronouncement 16.03.2023

Section 142(1)Section 143Section 143(2)Section 147Section 148Section 68

APPL NOS. 46536 TO 46539 & 46540 TO 46542 OF 2019 FEBRUARY 13,2020, While discussing Section 151 of the Income-tax Act, 1961 - Income escaping assessment - Sanction for issue of notice (Recording of reasons) - held that where necessary sanction to issue reopening notice under section 148 was obtained from

Rakesh Rathi, New Delhi vs. ITO, Ward-58(5), New Delhi

In the result appeal of the assessee is partly allowed

ITA 1790/DEL/2022[2011-12]Status: DisposedITAT Delhi02 Mar 2023AY 2011-12

Bench: Shri Chandra Mohan Gargassessment Year: 2011-12 Rakesh Rathi, Ito Ward 58(5), New C/O M K Bhatt & Co., Delhi Chartered Accountants, Vs. G-7(Basement), Preet Vihar, New Delhi 110092 Pan Agrpr8529C (Appellant) (Respondent) For Assessee : Shri M.K Bhatt, Fca Shri Malav Goswami, Advocate For Revenue : Shri Om Prakash, Sr Dr

For Appellant: Shri M.K Bhatt, FCAFor Respondent: Shri Om Prakash, Sr DR
Section 147Section 148Section 69A

following vital issues: a. Contents of information available to AO and b. Mere cash deposits are treated to be equivalent to income escaping assessment. 3. That the CIT (Appeals) has erred in law and on fact, in confirming the order of assessment under section 147/143

Sanjiv Gupta, Noida vs. DCIT, Central Circle-1, Noida

ITA 1729/DEL/2022[2012-13]Status: DisposedITAT Delhi27 Feb 2023AY 2012-13

Bench: Shri Pradip Kumar Kedia & Shri N.K. Choudhryassessment Year: 2012-13 Sanjiv Gupta, G-602, Versus Dcit, Central Circle-1, Pearl Gateway Tower, Noida. Sector-44, Noida. Pan: Adypg8000D (Appellant) (Respondent)

For Appellant: Sh. Mukul Gupta, Ld. CAFor Respondent: Sh. Jeetandra Kumar Kale, Ld. Sr. DR
Section 132Section 133(6)Section 142(1)Section 143(3)Section 144Section 147Section 148Section 153ASection 250(6)Section 54F

clear defiance of the proceedings taken up as per law. Therefore, ITO Ward 3(3), Noida recorded the reasons of initiating income escaping assessment proceedings, by taking requisite approval of the competent authority, i.e., the Pr. CIT, Noida and issuing the notice u/s. 148 of the Act dated 26.03.2019. Since

Dr. Sanjeev Bagai, New Delhi vs. ACIT, New Delhi

In the result, the appeal of the assessee is allowed

ITA 3087/DEL/2016[2007-08]Status: DisposedITAT Delhi24 Feb 2023AY 2007-08

Bench: Dr. B. R. R. Kumarsh. Yogesh Kumar Us

For Appellant: Sh. Satyajeet Goel, AdvFor Respondent: Sh. Rajesh Kumar Dhanesta, Sr. DR
Section 148Section 264Section 28

recording of proper satisfaction. 2(i) That the ld CIT(A) is also not justified in sustaining addition of Rs. 5 lacs as income escaping assessment by making reference to provisions of Sec. 28(iv) of the IT Act, 1961. (ii) That there is no factual or legal basis

Sri.John Mathew N, Alappuzha vs. The ITO, WD-2, Alappuzha

In the result, the appeal by the assessee is dismissed

ITA 81/COCH/2018[2001-02]Status: DisposedITAT Cochin24 Feb 2023AY 2001-02

Bench: Shri Sanjay Arora & Shri Sandeep Gosainshri John Mathew N. The Income Tax Officer Neroth House Ward - 2, Alleppey Vs. No. 1, Jubilee Road Alappuzha [Pan: Acupm8885D] Appellant Respondent Appellant By: Shri Anil D. Nair & Shri P.K. Biju, Advocates Respondent By: Smt. J.M. Jamuna Devi, Sr. D.R. Date Of Hearing: 03.02.2023 Date Of Pronouncement: 24.02.2023 O R D E R Per Bench This Appeal By The Assessee Challenges The Validity Of The Reassessment Under Section 147 Read With Section 143(3) Of The Income Tax Act, 1961 (‘The Act’ Hereinafter) Dated 20.11.2007 For Assessment Year (Ay) 2001-02, Since Upheld In First Appeal Vide Order Dated 24.01.2018 By The Commissioner Of Income Tax (Appeals), Kottayam (‘Cit(A)’ For Short). 2.1 At The Outset, Shri Anil D. Nair, The Ld. Counsel For The Assessee-Appellant, Would Submit That The Basis Of The Assessee’S Challenge Is Two-Fold: (A) Non-Supply Of The Reasons Recorded; & (B) True & Full Disclosure Of All Material Facts Relating To The Income Escaping Assessment By The Assessee Per His Return Of Income.

For Appellant: Shri Anil D. Nair &For Respondent: Smt. J.M. Jamuna Devi, Sr. D.R
Section 143(2)Section 143(3)Section 147Section 148(2)Section 230ASection 234B

fold: (a) non-supply of the reasons recorded; and (b) true and full disclosure of all material facts relating to the income escaping assessment by the assessee per his return of income. 2 M/s. Kunnummakkara Service/Income Tax Officer, W(2)(2) A copy of the reasons recorded was, despite being

P.Sudarshan, `Visakhapatnam vs. The Income Tax Officer, Ward-1(2), Visakhaptnam

In the result, the appeal of the assessee is partly allowed

ITA 53/VIZ/2020[2007-08]Status: DisposedITAT Visakhapatnam16 Feb 2023AY 2007-08

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Bleआयकर अपील सं./I.T.A.No.53/Viz/2020 (ननधधारण वर्ा / Assessment Year : 2007-08) P.Sudarshan Vs. Income Tax Officer 33-12-35, Devangula Veedhi Ward-1(2) Allipuram Direct Taxes Building Visakhapatnam Visakhapatnam [Pan : Ahwpp6272G] (अपीलार्थी/ Appellant) (प्रत्यर्थी/ Respondent) अपीलधथी की ओर से/ Appellant By : Shri C.Sanjeevarao, Ar प्रत्यधथी की ओर से / Respondent By : Shri On Hari Prasada Rao, Dr सुनवधई की तधरीख / Date Of Hearing 31.01.2023 : घोर्णध की तधरीख/Date Of Pronouncement : 16.02.2023

For Appellant: Shri C.Sanjeevarao, ARFor Respondent: Shri ON Hari Prasada Rao, DR
Section 142(1)Section 143(3)Section 147Section 148Section 263

during the F.Y.2006-07 for Rs.24 lakhs, which was not reported by the assessee in the return of income, the Ld.AO considered it as income escaping assessment and reopened the assessment u/s 148 of the Act and a notice dated 14.03.2014 was served on 30.03.2014. In response, the assessee provided

M/S Hanuman Tube Well Co., Jaipur vs. Deputy Commissioner of Income Tax, Circle-3, Jaipur

In the result, the appeal of the assessee is allowed

ITA 865/JPR/2019[2008-09]Status: DisposedITAT Jaipur13 Feb 2023AY 2008-09

Bench: DR. S. SEETHALAKSHMI (Judicial Member), SHRI RATHOD KAMLESH JAYANTBHAI (Accountant Member)

For Appellant: Shri S.L. Jain (Adv.) &For Respondent: Shri Sanjay Dhariwal (CIT)
Section 143(2)Section 147Section 148Section 40

Mumbal v. Bilawala & Co. 32 SOT 486 (Mumbai) has held- Section 147, read with section 40(b), of the Income-tax Act, 1961 Income escaping assessment General Assessment years 2002-03 to 2004-05- Assessee was a partnership firm of Advocates and Solicitors - While scrutinizing accounts of assessee

Shyam Products P.Ltd, New Delhi vs. ITO, Ward-23(3), New Delhi

In the result, appeal of the assessee is partly allowed as indicated above

ITA 4908/DEL/2018[2007-08]Status: DisposedITAT Delhi31 Jan 2023AY 2007-08

Bench: Shri Challa Nagendra Prasad, S.M.C.

For Appellant: Shri Suresh Kumar GuptaFor Respondent: Sr. D. R
Section 147Section 148Section 271Section 68Section 69C

APPL. NOS. 46536 TO 46539 & 46542 of 2019 February 13, 2020. While discussing Section 151 of the Income Tax Act, 1961 – Income escaping assessment – Sanction for issue of notice (Recording of reasons) – held that where necessary sanction to issue reopening notice under section 148 was obtained from Pr. Commissioner

Optimist Electronics P.Ltd, New Delhi vs. ITO, Ward-19(2), New Delhi

In the result, appeal of the assessee is partly allowed as indicated above

ITA 4907/DEL/2018[2008-09]Status: DisposedITAT Delhi31 Jan 2023AY 2008-09

Bench: Shri Challa Nagendra Prasad, S.M.C.

For Appellant: Shri Suresh Kumar GuptaFor Respondent: Sr. D. R
Section 147Section 148Section 271Section 68Section 69C

APPL. NOS. 46536 TO 46539 & 46542 of 2019 February 13, 2020. While discussing Section 151 of the Income Tax Act, 1961 – Income escaping assessment – Sanction for issue of notice (Recording of reasons) – held that where necessary sanction to issue reopening notice under section 148 was obtained from Pr. Commissioner

Income Tax Officer, Ward 2(3)(7), Surat vs. Shri Anil Pukhraj Jain, Surat

In the result the ground No

ITA 89/SRT/2017[2008-09]Status: DisposedITAT Surat23 Jan 2023AY 2008-09

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita No.89/Srt/2017 िनधा"रण वष"/Assessment Year: (2008-09) (Physical Court Hearing) Income Tax Officer, Ward-2(3)(7), Anil Pukhraj Jain, Room No.414, 4Th Floor, Aayakar Prop. Of Aakruti Stone, 206-2Nd Floor, Tulsi Building, Bhavan, Adajan, Surat-395009 Vs. Somnath Mahadev Ni Sheri, Mahidharpura, Surat – 395009. (Appellant) (Respondent)/ "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Ahapj8569Q ""या"ेप सं Cross Objection No.10/Srt/2021 (A/O Ita No.89/Srt/2017) िनधा"रण वष"/Assessment Year: (2008-09) Anil Pukhraj Jain, Income Tax Officer, Ward-2(3)(7), Room No.414, 4Th Floor, Aayakar Prop. Of Aakruti Stone, 206- 2Nd Floor, Tulsi Building, Vs. Bhavan, Adajan, Surat-395009 Somnath Mahadev Ni Sheri, Mahidharpura, Surat – 395009. Appellant/Co-Objector (Respondent) "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Ahapj8569Q िनधा"रती क" ओर से /Assessee By Shri Sapnesh R. Sheth, Ca राज"व क" ओर से /Respondent By Shri Ashok B. Koli, Cit-Dr सुनवाई क" तारीख/Date Of Hearing 23/12/2022 उ"ोषणा क" तारीख/Date Of Pronouncement 23/ 01/2023

Section 143(3)

Revenue to the ld Counsel for the assessee. In these three reasons so recorded, the subject matter of income escaped assessment, and quantum of income escaped is different, the number of invoices mentioned in the reasons recorded are different thus proposed addition to be made based on the reasons recorded ... answer of this question, let us consult the bare provisions of section 147 of the Income Tax Act, which are reproduced below: “147. Income escaping assessment.—If the Assessing Officer has reason to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject

Hetram Bokan, Gurgaon vs. ITO Ward - 2(1), Gurgaon

In the result, the appeal of the assessee is partly allowed

ITA 1688/DEL/2019[2013-14]Status: DisposedITAT Delhi12 Jan 2023AY 2013-14

Bench: Shri Kul Bharat[Assessment Year : 2013-14] Hetram Bokan, Vs Ito, 226, 2Nd Floor, Jmd Megapolis, Ward-2(1), Sohna Road, Sector-48, Gurgaon. Gurgaon, Haryana-122001. Pan-Amkpb3430B Appellant Respondent Appellant By None Respondent By Shri Ramdhan Meena, Sr.Dr Date Of Hearing 12.01.2023 Date Of Pronouncement 12.01.2023

Section 139(4)Section 147Section 234A

stood prior to such substitution. Under the old provisions of section 147, separate clauses (a) and (b) laid down the circumstances under which income escaping assessment for the past assessment years could be assessed or reassessed. To confer jurisdiction under section 147(a) two conditions were required to be Satisfied

Pradeep Kumar, Jhujhunu vs. ITO Ward -2, Jhujhunu

In the result, appeal of the assessee is allowed

ITA 370/JPR/2022[2011-12]Status: DisposedITAT Jaipur11 Jan 2023AY 2011-12

Bench: HON’BLE SHRI SANDEEP GOSAIN (Judicial Member)

For Appellant: Shri Sharwan Kumar Gupta, AdvocateFor Respondent: Ms Monisha Choudhary (JCIT)
Section 142(1)Section 143(3)Section 147Section 148Section 234A

reasons recorded for re-opening u/s 148 is incorrect. Section 147 clearly authorizes the AO to make addition on account of any income escaping assessment notwithstanding that the reasons for such issue have not been included in the reasons recorded under sub-section (2) of section 148. In this case ... held no longer good law. 8 Shri Pradeep Kumar, Jhunjhunu. The heading of s. 147 is "Income escaping assessment" and that of s. 148 "Issue of notice where income escaped assessment". Sec. 148 is supplementary and complimentary to s. 147. Sub-s. (2) of s. 148 mandates reasons for issuance

Raj Bir Singh, New Delhi vs. ITO, Ward-3, Rohtak

In the result, appeal of the assessee is dismissed

ITA 1185/DEL/2022[2013-14]Status: DisposedITAT Delhi04 Jan 2023AY 2013-14

Bench: Shri Anil Chaturvedi & Shri Narender Kumar Choudhry

For Appellant: NoneFor Respondent: Shri A K Arora, Sr DR
Section 143(3)

incorrect information; (b) without independent application of mind by the Ld. Assessing Officer; and (c) treating mere cash deposits to be equivalent to income escaping assessment; (d) Not considered the evidences produced in respect of cash sources. 2. That on the facts and circumstances of the case

Maharashtra State Electricity Transmission Company Ltd., Mumbai vs. The Income Tax Officer, Ward-14(2)(3), Mumbai

In the result, the appeal of the assessee is al

ITA 990/MUM/2022[2011-12]Status: DisposedITAT Mumbai29 Dec 2022AY 2011-12

Bench: Shri Vikas Awasthy () & Shri Om Prakash Kant () Assessment Year: 2011-12 Maharashtra State Electricity Income-Tax Officer, Ward Transmission Company Ltd., 14(2)(3), Plot No. C-19 E Block, Vs. Aayakar Bhavan, Maharshi Prakashganga, Bandra-Kurla Karve Road, Complex, Bandra (East), Mumbai-400020. Mumbai-400051. Pan No. Aaecm 2936 N Appellant Respondent Assessee By : Mr. Ketan Ved, Ar Revenue By : Mr. Harishankar Lal, Dr : Date Of Hearing 15/11/2022 Date Of Pronouncement : 29/12/2022

For Appellant: Mr. Ketan Ved, ARFor Respondent: Mr. Harishankar Lal, DR
Section 148

Subsequently, the Assessing Officer recorded . Subsequently, the Assessing Officer recorded Maharashtra State Electricity Transmission Maharashtra State Electricity Transmission 3 Company Ltd. reasons that income escaped assessment and issued notice under reasons that income escaped assessment and issued notice under reasons that income escaped assessment and issued notice under section ... details as to which fact or material was not disclosed by the Petitioner that led the Petitioner that led to its income escaping assessment. to its income escaping assessment. There is merely a bald assertion in the reasons that there There is merely a bald assertion in the reasons that

Vipinlumar Sanklecha, Mumbai vs. ITO Ward 16 (3)(5), Mumbai

In the result, the appeal of the assessee is allowed

ITA 6612/MUM/2019[2011-12]Status: DisposedITAT Mumbai29 Dec 2022AY 2011-12

Bench: Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T.A. No.6612/Mum/2019 (निर्धारण वर्ा / Assessment Years: 2011-12) Vipinkumar Sanklecha बिधम/ Ito, Ward-16(3)(5) Room No. 447, 4Th Floor, A/303, Bhattad Tower, Opp. Vs. Kora Kendra Ground, R. M. Aayakar Bhavan, M. K. Bhattad Road, Borivali (W), Road, Mumbai-400020. Mumbai-400092. स्थधयी लेखध सं./जीआइआर सं./Pan/Gir No. : Aayps5062N (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) Assessee By: Shri Ajay Singh Revenue By: Shri Mahender Ahuja सुनवाई की तारीख / Date Of Hearing: 21/11/2022 घोषणा की तारीख /Date Of Pronouncement: 29/12/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Appeals)-07, Mumbai Dated 02.08.2019 For The Assessment Year 2011-12. 2. At The Outset, The Ld. Ar Drew Our Attention To Ground Nos. 1 & 2 Which Are The Legal Issues Raised By The Assessee Against The Action Of The Ao To Have Reopened The Assessment Without Satisfying The Condition Precedents As Laid Down U/S 147 Of The Income Tax Act, 1961 (Hereinafter “The Act”) As Well As For Not Following The Hon’Ble Supreme Court As Well The Hon’Ble Bombay High Court Decision Cited By Him. The Ground Nos. 1, 2 & 3.1 Reads As Under: - “1. The Id. Cit (A) Erred In Confirming The Reopening Of Assessment Without Appreciating That The Reopening Of The Assessment Is Bad In Law, Invalid & Liable To Be Quashed In As Much As:

For Appellant: Shri Ajay SinghFor Respondent: Shri Mahender Ahuja
Section 143Section 147Section 148Section 68

shares of this company in this assessment year, he made up his mind that LTCG from this scrip was bogus and so income escaped assessment. According to me, the information from DDIT(Inv.) dated 23.03.2018 at best can only trigger “Right to suspect” and not “Right to believe, escapement ... opening. Even in the re-assessment order AO makes the addition of Rs.15,93,445/- which also does not match with the income escaping assessment as stated in the reasons recorded. So the facts stated in the reasons recorded are not correct and therefore on incorrect facts itself