ACIT v. Maruti Clean Coal and Power Ltd. (2018) 63 ITR 78 (SN) (Raipur) (Trib.)

S. 147: Reassessment – After expiry of four years – No accommodation entries were found in books of assessee- The AO plainly relied on the information from the investment wing, there was nothing in the reassessment recorded for reopening of assessment – Reassessment is held to be not valid . [ S.148 ]

On appeal, the Tribunal held that, when the entries were not found in the books of the assessee the entries could not be made the basis for reopening the completed assessment. The veracity of the notice  u/s. 148 has to be tested on the basis of the notice. The mandate of the proviso to S. 147 is that income that has to be taxed must have escaped assessment by reason of the failure on the part of the assessee to disclose fully and truly all material facts necessary for his assess­ment. Nothing in the reasons recorded for the reopening of the assessee relat­ing to non-disclosure of full and true facts by the assessee. There was no independent application of mind by the AO. The AO had borrowed information from the investigation made by the Inves­tigation Wing. Therefore the notice issued u/s. 148 was without jurisdiction and the notice was set aside. (ITA. No. 98/Raipur/2012 and
C.O. No. 1/Raipur/2014 and 187/Raipur/2014) (AY. 2004-05)