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2014 (7) TMI 559 - HC - Income TaxValidity of notice u/s 148 of the Act Reason to believe - Assessee engaged in trading of various industrial products Failure to disclose material facts - Held that:- At the time of issuing a notice u/s 148 of the Act, it is not necessary for the AO to conclusively arrive at a finding that there has been escapement of income - At the stage of issue of the notice the only requirement is to examine whether on the available material a reasonable person could form a reasonable view to believe that income chargeable to tax has escaped assessment - the satisfaction of the AO to form a reasonable belief that income chargeable to tax has escaped assessment is not unreasonable. The recording or non-recording of the words "failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment" would not by itself bestow or oust jurisdiction one would necessarily have to read the reasons as a whole to find out whether or not there has been a failure to disclose truly and fully all necessary facts for assessment - the reasons recorded clearly indicates that scrutiny proceedings for AY 2008-09 and survey action taken u/s 133A of the Act has brought on record evidence indicating bogus purchase bills from various parties, one of them being M/s. Rahul Industries for the AY 2005-06 as indicated in the chart annexed to the reasons recorded the notice and the reasons recorded does indicate that there is relevant material obtained during the survey and assessment proceedings for assessment year 2008-09 on the basis of which a reasonable person could reasonably form the belief that income chargeable to tax has escaped assessment thus, there was no reason to interfere in the notice of reassessment u/s 148 of the Act Decided against Assessee.
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