TMI Blog2011 (10) TMI 781X X X X Extracts X X X X X X X X Extracts X X X X ..... first legal issue raised by Assessee in this appeal is against the order of CIT(A) confirming the action of Assessing Officer in initiating the proceedings Under Section 147 of the Act. This issue the Assessee has raised by way of additional ground for which the revenue has not agitated and we admit this ground, which reads as under: For that the initiation of the proceedings Under Section 147 and completion of the assessment Under Section 147 was wrong and illegal, and the Ld. CIT(A) erred in upholding the action Under Section 147 on irrelevant considerations. 3. We have heard rival submissions and gone through facts and circumstances of the case. Briefly stated facts are that the Assessee is a cooperative society engaged in the trading o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground of the Assessee fails. Further aggrieved, Assessee is in second appeal before us. 4. At the time of hearing, Ld. Counsel for the Assessee submitted that the Assessee is a cooperative society and is engaged in procuring fertilizers, pesticides, clothes and other consumer goods for supplying to its members. He also contended that return for the year was filed on 28.11.2003 which was processed Under Section 143(1) on 06.01.2004. Later on assessment was reopened by issue of notice Under Section 148 of the act. He states that the initiation of the proceedings Under Section 148 of the Act and the assessment made thereunder is prima facie wrong, unjustified, bad in law and without jurisdiction as the reasons recorded could not show anything ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come chargeable to tax has escaped assessment for A.Y. 03-04. Issue notice Under Section 148 of the I.T. Act 61. After going through above reasons and the provisions of Section 148 r.w. Section 147 of the Act, we are of the view that the essential requirement for initiating reassessment proceedings under these provisions is that the Assessing Officer must have reason to believe that any income chargeable to tax has escaped assessment for any assessment year. Another requirement which is necessary for assuming jurisdiction under Section 147 of the Act is that the Assessing Officer shall record his reasons for issuing notice as mandated by Section 148(2) of the Act. This requirement necessarily postulates that before the Assessing Officer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the facts mentioned and the reasons recorded prior to such initiation. It is not open to the Revenue to justify such initiation on the basis of further reasons to be supplied in the form of affidavits or submissions, whatsoever. Thus, where the reasons recorded do not bring out any ground, making out an objective satisfaction arrived at by the Officer, no reason other than those recorded by the Officer can possibly be urged to sustain such initiation. It is settled law that reason to believe can never be the outcome of a change of opinion and it is essential that before any action is taken by the Officer, the Officer should substantiate his satisfaction. This view of ours is supported by Hon'ble Gujarat High Court in the case of Sar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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