Communication Ltd, a telecome service provider, had filed income tax returns for various assessment years claiming refund of income tax. Returns were filed within the time framed prescribed as per Section 139(1). The Inc

As per the provision of section 148A of the Income Tax Act, 1961, the information with the Assessing Officer which suggests that the income chargeable to tax has escaped assessment means: any information in the case of the assessee for the relevant assessment year in accordance with the risk management strategy formulated by the Board from time to time; or any audit objection to the effect that the assessment in the case of the assessee for the relevant assessment year has not been made in accordance with the provisions of this Act; or any information received under an agreement referred to in section 90 or section 90A of the Act; or any information made available to the Assessing Officer under the scheme notified under section 135A; or any information which requires action in consequence of the order of a Tribunal or a Court; or any information in the case of the assessee emanating from survey conducted under section 133A, other than under sub-section (2A) of the said section, on or after the 1st day of September, 2024. If the AO is having such information which suggest that the income chargeable to tax has escaped assessment, then the assessing officer may issue notice for re-opening of assessment subject to fulfilment of certain condition. Assessing Officer has power to re-open, provided there is "tangible material" to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief. (CIT Delhi vs M/S. Kelvinator of India Ltd) In this case, an assessee, a telecom service provider, had filed income tax returns for various assessment years claiming refund of tax. The Revenue did not process the refund on the ground of technical difficulties and pending verification of the assessee's tax liability. The Supreme Court in CIT v. Gujarat Electricity Board (2003) held that where a return is filed and acknowledgment is issued, it cannot be said that income has escaped assessment merely because the return was not processed under Section 143(1). The above situation does not seem to fall in any of the above points which suggests that the income chargeable to tax has escaped assessment. Hence, the action of AO is not tenable, and reopening of the assessment of the assessee under section 147 of the Act may not be valid.