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2013 (10) TMI 1034 - HC - Income TaxReasons to believe u/s 148 for the assessment u/s 147 of the Income tax Act – Held that:- Reliance has been placed upon the Rajesh Jhaveri's case [ 2007 (5) TMI 197 - SUPREME Court], wherein it has been held that The scope and effect of section 147 as substituted with effect from April 1, 1989, as also sections 148 to 152 are substantially different from the provisions as they stood prior to such substitution. Under the old provisions of section 147, separate clauses (a) and (b) laid down the circumstances under which income escaping assessment for the past assessment years could be assessed or reassessed. To confer jurisdiction under section 147(a) two conditions were required to be satisfied : firstly the Assessing Officer must have reason to believe that income, profits or gains chargeable to income-tax have escaped assessment, and secondly he must also have reason to believe that such escapement has occurred by reason of either omission or failure on the part of the assessee to disclose fully or truly all material facts necessary for his assessment of that year. Both these conditions were conditions precedent to be satisfied before the Assessing Officer could have jurisdiction to issue notice under section 148 read with section 147(a). But under the substituted section 147 existence of only the first condition suffices. In other words if the Assessing Officer for whatever reason has reason to believe that income has escaped assessment it confers jurisdiction to reopen the assessment. In the present case, it is explicitly clear that the reasons given for effecting reassessment were not the matters considered by the assessing authority while passing assessment order and no opinion was formed in this regard. This being the position, the version of the petitioner that no new materials have been brought to light to invoke the power and proceedings under section 147 or that it is proposed by way of "change of opinion", does not contain any pith or substance – Decided against the Assessee.
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