Case Law Details
ITO Vs Gujarat Storages P.Ltd. (ITAT Ahmedabad)
As far as banking transactions are concerned, these details were available with the AO. This information was given in the audited accounts. Any transactions shown in the bank statement could never be construed per se as an escaped income. It is the AO who has to form his opinion as to how the transaction appearing in the bank account could be treated as escaped income. There is no logical analysis of the information received from the DGIT (Investigation) establishing the direct nexus between the information vis-à-vis escaped income available in the hands of the assessee. He simply made reference to the information and then believed that some income must have been escaped, and therefore, a detailed investigation regarding the banking entries requires to be made. For that purpose, he should have selected the case for scrutiny assessment by issuing notice under section 143(2) of the Act. For the purpose of section 147, he has to be very specific as to how fresh information came into his possession establishing a live-link between the escapement of income vis-à-vis this information. No such things are available in the reasons, therefore, to our mind, the ld.first appellate has appreciated the facts in right perspective, and rightly quashed reopening of the assessment. We do not find any error in the order of the ld.CIT(A). Accordingly, this appeal of the Revenue is dismissed.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
Revenue is in appeal before the Tribunal against order of the ld.CIT(A)-2, Ahmedabad dated 27.6.2016 passed for Asstt.Year 2007-08.
2. Though the Revenue has taken three grounds of appeal, but its solitary grievance is that the ld.CIT(A) has erred in quashing reassessment order passed under section 147 read with section 143(3) of the Income Tax Act, 1961 on the ground that reopening is bad in the eyes of law.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
