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2014 (3) TMI 943 - ALLAHABAD HIGH COURTValidity of Notice u/s 148 of the Act - Reassessment of proceedings - Whether the reasons supplied by the AO to the assessee were tangible materials to proceed with the re-assessment proceedings or re-assessment proceedings have been initiated only on mere change of opinion – Held that:- One of the purposes of Section 147, appears to ensure that a party cannot get away by wilfully making a false or untrue statement at the time of original assessment and when that falsity comes to notice, to turn around and say "you accepted my lie, now your hands are tied and you can do nothing". It would be travesty of justice to allow the assessee that latitude. The decision in Krishna Pvt. Ltd. Etc. V. Income-tax Officer and others [1996 (7) TMI 2 - SUPREME Court] followed – if it is found that either on account of an omission of failure of the assessee to fail the return or on account of his omission or failure to disclose fully and truly all material facts necessary for his assessment for that year, income chargeable to tax has escaped assessment for that year the Income Tax Officer is entitled to re-open the assessment in accordance with the procedure prescribed by the Act - he can issue the notice u/s 148 proposing to re-open the assessment only where he has reason to believe that on account of either the omission or failure on the part of the assessee to file the return or on account of the omission or failure on the part of the assessee to file the return or on account of the omission of failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for that year, income has escaped assessment. In Assistant Commissioner of Income-tax Vs. Rajesh Jhaveri Stock Brokers P. Ltd. [2007 (5) TMI 197 - SUPREME Court] it has been held that if the Assessing Officer for whatever reason has reason to believe that income has escaped assessment it confers jurisdiction to reopen the assessment - both the conditions must be fulfilled if the case falls within the ambit of the proviso to section 147 - So long as the ingredients of section 147 are fulfilled, the AO is free to initiate proceeding under section 147 and failure to take steps under section 143(3) will not render the AO powerless to initiate reassessment proceedings even when intimation under section 143(1) had been issued - Issuance of notice u/s 148 for the Assessment Year 2009-10 cannot be said to be without jurisdiction - at this stage, the notice issued u/s 148 cannot be interfered by the Court in exercise of writ jurisdiction – the observations are confined only to issuance of notice u/s 148 and be not treated any expression of opinion on merits of the claim of the assessee – Decided against Assessee.
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