The High Court quashed the reassessment proceedings initiated under section 147 by holding that the AO\u2019s reliance on borrowed satisfaction from third-party search information without independent application of mind or furnishing underlying material was invalid. Further, the underlying material, seized documents and statements were not supplied to assessee on the plea of confidentiality. Also, objections were rejected without disclosure of incriminating material or establishing a nexus with alleged escapement, thereby vitiating the statutory condition of \u2018reason to believe\u2019. In the absence of tangible material and a rational link, the reopening proceedings were held to be without jurisdiction. [BP. 2013-14 to 2015-16]<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 147: Reassessment-AO recorded reasons mechanically on information received from Investigation Wing \/ DCIT arising from search on third party-Reasons based on borrowed satisfaction and incorrect factual assumptions, evidencing non-application of mind-Reopening notice and consequential proceedings quashed. [S.148, S.151, Art. 226]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-65072","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gVy","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=65072"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65072\/revisions"}],"predecessor-version":[{"id":65073,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/65072\/revisions\/65073"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=65072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=65072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=65072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}