Case Law Details
Smt. B. Radha & Ors. Vs. DCIT (ITAT Hyderabad)
The impugned issue to be considered is whether the reopening of assessment on the basis of so-called statement of Shri Ramalinga Raju (Satyam Computers) is warranted. As seen from the additions made, there is no live-link with the reasons recorded and the additions made. In fact, all the issues have been examined at the time of original assessment as scrutiny assessment has been completed in this case earlier.
In this case as there being no nexus or live-link with the reasons recorded and the ‘formation of belief’ to come to a conclusion that there was escapement of income and also since the assessment has been reopened beyond the period of 4 years when there is no failure on the part of the assessee to fully and truly disclose all material facts in the original assessment Itself and there being ‘no tangible material’ for the reopening of the assessment the CIT(A) erred in confirming the order of the Assessing Officer. We, therefore, hold that the reopening of the assessment under section 147 is bad in law and is to be quashed.
FULL TEXT OF THE ITAT JUDGEMENT
These are appeals by different assessees of Satyam Group raising similar grounds on the common but separate orders of Ld. Commissioner of Income Tax (Appeals)-12, Hyderabad dated 31-03-2015. As issues are common, these appeals are heard together and decided by this common order.
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