2012 (7) TMI 374 - BOMBAY HIGH COURT

Quashing the initiating proceedings u/s. 147 - Revenue appeal - Held that:- The reasons recorded for initiating reassessment proceeding u/s 147 clearly indicates that there was no new material which had come to the notice of the AO so as to lead to a reasonable belief that income assessable to tax has escaped assessment - order passed originally u/s 143(3) was passed after the respondent had made adhoc claim for expenditure at 30% of the professional receipts in the revised return of income which was later withdrawn. In fact the reasons for reopening the assessment for the year 2002-03 itself records that the the claim of 30% adhoc expenses was withdrawn when the respondent assessee was asked to substantiate the claim - no basis for the Assessing Officers to form a belief that income has escaped assessment - against revenue.