Section 69B, read with section 147 of the Income-tax Act, 1961 - Undisclosed investments (Reopening of assessment)

IT : Where Assessing Officer passed reassessment order taking a view that assessee made unexplained investment in different items exceeding funds available with him, since said belief of Assessing Officer was not based on any relevant material and, moreover, impugned order was passed for bringing to tax only those incomes in respect of which no reasons were recorded, same deserved to be set aside
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[2015] 58 taxmann.com 36 (Guwahati - Trib.)
IN THE ITAT GUWAHATI BENCH
Income-tax Officer, Ward-2, Assam
v.
Namwar Ali Mazumdar*
H.L. KARWA, PRESIDENT
AND RAJENDRA, ACCOUNTANT MEMBER
IT APPEAL NOS. 83 & 84 (GAU.) OF 2012
C.O. NOS. 2 & 3 (GAU.) OF 2013
[ASSESSMENT YEARS 2004-05 & 2005-06]
JANUARY  28, 2015
Section 69B, read with section 147 of the Income-tax Act, 1961 - Undisclosed investments (Reopening of assessment) - Assessment years 2004-05 and 2005-06 - For relevant assessment years, Assessing Officer issued notice under section 148 seeking to reopen assessment - Reason recorded for reopening assessment was that assessee had made investment in different items which exceeded funds available with him and, thus, there was certain unexplained investment escaping assessment - Assessing Officer thereupon passed assessment order under section 147 read with section 143(3) making certain additions and disallowances - It was noted that reasons recorded for reopening of assessment were not based on any relevant material on record - It was also apparent that no income was put to tax with reference to undisclosed investment but reassessment order was passed for bringing to tax only those incomes in respect of which no reasons were recorded - Whether on facts, impugned reassessment order was without jurisdiction and deserved to be set aside - Held, yes [Paras 15 and 16] [In favour of assessee]