Mere receipt of information cannot be equated to reason to believe that income has escaped assessment

CA Prarthana Jalan Hon’ble Bombay High Court in the case of Piramal Enterprises Ltd. v/s DCIT in their order dated 15th February 2017 has held that “Mere receipt of information from any source would not by itself tantamount to reason to believe that income chargeable to tax has escaped assessment” In the case the original return of income was processed u/s 143(1) of the Act. Subsequently the AO received a communication from the office of the Chief Commissioner of Income Tax wherein a list of companies was annexed, who had issued shares at the huge premium. The A.O on the basis of the...