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Pr. Commissioner Of Income Tax, ... vs Foryu Overseas (P) Ltd. on 25 November, 2016

13. The Id. AR subm itted that facts on record clearly show that the AO has acted on suspicion only and not on any credible input available to him through DDIT (investigation) information or otherwise on the basis of any exercise or application of mind by himself. Therefore, the reassessm ent proceedings and all consequent orders are not sustainable and bad in law. Reiterating his earlier arguments, the Id. AR vehem ently pointed out that the approval/sanction given in para 12 of the proforma is not a valid sanction as per ratio of the various decisions including decision of Hon'ble High Court of Madhya Pradesh in the case of S. Goyanka Lime and chem icals Ltd. (supra), which has been upheld by H on'ble Suprem e Court by dismissing SLP of the Revenue reported in 237 Taxm an 378 (SC) and therefore, initiation of reassessm ent proceedings u/s. 147 of the Act, notice u/s. 148 of the Act, reassessm ent proceedings and all consequent orders may kindly be quashed. The decisions relied by the Ld. Sr. DR are distinguished on peculiar facts as those are on prima face belief.
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