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2012 (12) TMI 901 - HC - Income TaxValidity of notice u/s 148 - Gift - Re-assessment u/s 147 - Without a reasonable cause - Merely on the directions of another officer – Jurisdiction of officer - ACIT issued notice on the basis of some information received from the ADIT (Inv) about bogus gift Held that:- If the assessee fails to urge the question of territorial jurisdiction, he cannot call it into question later. The reason is apparently founded on public policy, not to allow questions of territorial jurisdiction to be urged and destabilize entire proceedings, once they proceed on merits There was nothing on the record for the AO to assume that the information about the gifts in question being bogus, was believable, or reasonably credible to warrant reopening of assessment. The entire reassessment proceedings’ initiation was premised on a vague suspicion. “Reasons to believe” as emphasized by the court are reasonable inferences based on objective information, verified in a prima facie manner. In favour of assessee
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