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2014 (4) TMI 172 - HC - Income TaxReassessment - reason to believe - Notice for re-assessment u/s 148 of the Act – Incriminating documents found - Held that:- It is not a case for intervention in the re-assessment proceedings at this stage - the record shows that during search and seizure operation conducted on Sh. S.K. Jain on 04.09.2010, certain incriminating documents such as cash books and cheque books leading to unaccounted transport were taken in possession by the Department - The cash book contains the names of the middlemen through whom cash was received by Sh. S.K. Jain and in lieu of this cash, he used to provide cheques to the beneficiary company which included the assessee as well – Relying upon Commissioner of Income Tax, Delhi Versus M/s. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA ] - mere change of opinion is not a “reason to believe” to re-open the assessment – there is a distinction between the ‘power of review’ and ‘power to re-assess’ - The reasons recorded have a link with the belief that income has escaped income - The source of information to frame an opinion to reassess the income is the documents seized from S.K. Jain – the documents were not in possession of the AO at the time of framing assessment - The relevancy of the documents is required to be inquired into –Decided against Assessee.
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