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2014 (7) TMI 391 - HC - Income TaxReopening of assessment u/s 148 of the Act – Full disclosure of material facts not made - Held that:- The scrutiny of return of income filed for the AY 2006-07 was undertaken - It was also noted during such scrutiny that the assessee was engaged in the business of trading in shares, securities and future option - The assessee also showed income from other sources i.e. from dividend - In respect of unsecured loans, various queries were raised and they have been also answered - there was disclosure and the occasion would not arise to term this as the assessee not having disclosed fully and truly all the material facts necessary for assessment - the AO when forms his belief on the basis of subsequent new and specific information that the income chargeable to tax has escaped assessment on account of omission on the part of the assessee to make full and true disclosure of primary facts, he may start reassessment proceedings as fresh facts revealed the non-disclosure full and true - Such facts were not previously disclosed or it can be said that if previously disclosed, they expose untruthfulness of facts revealed. The Assessing Officer required jurisdiction to reopen u/s 147 r.w. section 148 of the Act, where the information must be specific and reliable – Relying upon Phool Chand Bajrang Lal And Another Versus Income-Tax Officer And Another [1993 (7) TMI 1 - SUPREME Court] - since the belief is that of the Income-tax Officer, the sufficiency of reasons for forming the belief, is not for the Court to judge but is open to an assessee to establish that there exists no belief or that the belief is not at all a bona fide one or based on vague, irrelevant and non-specific information - To that limited extent, the Court may look at the view taken by the Income-tax Officer and can examine whether any material is available on record from which the requisite belief could be formed by the AO and whether that material has any rational connection or a live link with the formation of the requisite belief - It is also immaterial that at the time of making original assessment, the AO could have found by further inquiry or investigation as to whether the transactions were genuine or not - If on the basis of subsequent valid information, the AO forms a reason to believe on satisfying twin conditions prescribed u/s 147 of the Act that no full and true disclosure of facts was made by the assessee at the time of original assessment - the income chargeable to tax had escaped assessment, his belief and the notice of reassessment based on such belief/ opinion needs no interference. The information furnished at the time of original assessment, when by subsequent information received from the DCIT, Kolkata, itself found to be controverted, the objection to the notice of reassessment u/s 147 of the Act must fail - at the time of scrutiny assessment, a specific query was raised with regard to unsecured loans and advances received from the said company namely, Basant Marketing Pvt. Ltd. based at Kolkata - These being the transactions through the cheques and drafts, there would arise no question of the AO not accepting such version of the assessee and not treating them as genuine loans and advances - Furnishing the details of names, addresses, PANs, etc. also would lose its relevance if subsequently furnished information, which has been made basis for issuance of notice impugned, concludes that Basant Marketing Pvt. Ltd. is merely a dummy company of one Shri Arun Dalmia, which provided the accommodation entries to various beneficiaries. The Joint Director, CBI, Mumbai, intimated to the DIT (Investigation), Mumbai - From the analysis of details furnished and the beneficiaries reflected, which are spread across the country, the CIT, Koklata, suspected the accommodation entry related to the AY 2006-07 as well, this information has been provided to Director General of Income-tax, Kolkata, who in turn, communicated to the Chief Commissioner of Income-tax, Ahmedabad - revelation of investigation as could be noticed from the record examined (file) deserves no reflection in this petition - Insistence on the part of the petitioner to provide any further material forming the part of investigation carried out against Dalmias also needs to meet with negation, as the law requires supply of information on which AO recorded her satisfaction, without necessitating supply of any specific documents - The proceedings initiated u/s 147 of the Act would not be rendered void on non-supply of such document for which confidentiality is claimed at this stage – the decision in Acorus Unitech Wireless Private Limited Versus Assistant Commissioner of Income Tax [2014 (3) TMI 154 - DELHI HIGH COURT] followed - assumption of jurisdiction on the part of the AO is based on fresh information, specific and reliable and otherwise sustainable under the law, challenge to reassessment proceedings warrant no interference – Decided against Assessee.
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