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2012 (3) TMI 244 - BOMBAY HIGH COURTValidity of notice issued u/s 148 for re-opening of assessment when jurisdiction was founded merely on the possibility of escapement – asseseee being Singapore Company had business of investment in Indian securities – electronically 'annexure less' return of NIL income filed in accordance with provisions of DTAA between India and Singapore – several notes annexed to the return of Income making relevant disclosures – A.O. sought to reopen assessment on ground that petitioner is FII and section 115AD would be attracted and short term capital gains may have arose – A.Y. 2006-07 - Held that:- It is settled principle of law that when the A.O. issues a notice u/s 148, at that stage the only question is whether there was relevant material on which a reasonable person could have formed a requisite belief and validity of the notice u/s 148 has to be determined on the basis of the reasons which are disclosed to the assessee. Those reasons constitute the foundation of the action initiated by the A.O. of reopening the assessment. Those reasons cannot be supplemented or improved upon subsequently. In present case, attention of A.O. was drawn to the fact that assessee is not FII and it would be evident that the A.O. has not acted within his jurisdiction in purporting to reopen the assessment. Also A.O. was not entitled, when he disposed of the objections to travel beyond the ambit of the reasons which were disclosed to the assessee. See CIT v. Kelvinator of India Ltd (2010 - TMI - 35201 - Supreme Court Of India) – Decided in favor of assessee.
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