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2014 (2) TMI 1125 - HC - Income TaxNotice u/s 148 of the Act Reopening of Assessment - Interpretation of the term reason to believe - Whether there was reason to believe that any income chargeable to tax had escaped assessment Held that:- The expression 'reason' has been explained by the Supreme Court in Assistant CIT Vs. Rajesh Jhaveri Stock Broker Pvt. Ltd. [2007 (5) TMI 197 - SUPREME Court] means a cause or justification - the order of assessment passed by the AO u/s 143(3) does not indicate that the AO had brought his mind to bear - there is nothing in the reply filed by the assessee to the notice under Section 142(1) that would indicate a full disclosure of facts in regard to either the credit worthiness of the companies which made the investments or the genuineness of the transaction - From the reply which was furnished by the assessee during the course of the assessment proceedings, it does not emerge that the assessee had discharged the onus of establishing the credit worthiness of the companies which had ostensibly invested the amount or in regard to the genuineness of the transaction - though the reopening of the assessment is beyond the period of four years but the Assessing Officer was satisfied that the condition stipulated in the first proviso to Section 147 was duly fulfilled thus, there was no illegality in the order of the AO or in the Notice issued u/s 148 r.w section 147 of the Act Decided against Assessee.
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