For reopening assessem't basic jurisdict'n requirment need to be satisfied,ITAT
For reopening assessem't basic jurisdict'n requirment need to be satisfied,ITAT
Assessee filed return. Assessment were reopened. In assessment, AO determined total taxable income. On appeal, CIT(A) deleted additions. On appeal ITAT held, reopening of assessment valid, this does not satisfy that requirement of law, prior to reopening of assessment, AO has to, apply his mind to materials, conclude that he has reason to believe that income of Assessee has escaped assessment. Basic jurisdiction requirment need to be satisfied.-500918
Facts in Brief:
1. The assessee is a company and has filed its return of income.
2. The assessments were reopened u/s 147 (of Income Tax Act, 1961).
3. In assessments, AO determinined the total taxable Income.
4. On appeal, CIT(A) deleted addition made u/s 68 (of Income Tax Act, 1961).
5. On the issue of reopening the Ld.CIT(A) held against the assessee.
On appeal ITAT held,
6. While the CIT may have proceeded on the basis that the reopening of the assessment was valid, this does not satisfy the requirement of law that prior to the reopening of the assessment, the AO has to, applying his mind to the materials, conclude that he has reason to believe that income of the Assessee has escaped assessment. Unless that basic jurisdictional requirement is satisfied a post mortem exercise of analysing materials produced subsequent to the reopening will not rescue an inherently defective reopening order from invalidity.
Case Reference- Delhi Bawa Float Glass Ltd., Kanpur vs Department Of Income Tax
(Income Tax Appellate Tribunal)
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