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2013 (8) TMI 765 - HC - Income Tax‘Reasons to believe’ for re-opening of assessment u/s 147 of the Income Tax Act – Notice issued u/s 148 of the Income tax act – Held that:- Relying upon the judgment in the case of Assistant Commissioner of Income-tax Vs. Rajesh Jhaveri Stock Brokers P. Ltd. [ 2007 (5) TMI 197 - SUPREME Court ]; Commissioner of Income-Tax Vs. Kelvinator of India Ltd., [2010 (1) TMI 11 – SUPREME COURT OF INDIA] , it is held that the language of Section 147 of the Act stipulates that there should be reasons coupled with the belief and both the conditions have to be satisfied. Law requires that there should be rational connection between the reason and the belief that income chargeable to tax had escaped assessment. Reasons to believe as recorded in the present case are vague, unreasonable, incomplete and irrational. No rational or reasonable person can form or decipher from the reasons that income had escaped assessment - Petitioner is entitled to succeed - Impugned order dated 23rd August, 2007 issued under Section 148 read with Section 147 of the Act for the assessment year 2002-03 is hereby set aside – Decided in favor of Assessee.
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