Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (7) TMI 559 - HC - Income TaxValidity of notice u/s 148 of the Act – Reason to believe - Assessee engaged in trading of various industrial products – Failure to disclose material facts - Held that:- At the time of issuing a notice u/s 148 of the Act, it is not necessary for the AO to conclusively arrive at a finding that there has been escapement of income - At the stage of issue of the notice the only requirement is to examine whether on the available material a reasonable person could form a reasonable view to believe that income chargeable to tax has escaped assessment - the satisfaction of the AO to form a reasonable belief that income chargeable to tax has escaped assessment is not unreasonable. The recording or non-recording of the words "failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment" would not by itself bestow or oust jurisdiction – one would necessarily have to read the reasons as a whole to find out whether or not there has been a failure to disclose truly and fully all necessary facts for assessment - the reasons recorded clearly indicates that scrutiny proceedings for AY 2008-09 and survey action taken u/s 133A of the Act has brought on record evidence indicating bogus purchase bills from various parties, one of them being M/s. Rahul Industries for the AY 2005-06 as indicated in the chart annexed to the reasons recorded – the notice and the reasons recorded does indicate that there is relevant material obtained during the survey and assessment proceedings for assessment year 2008-09 on the basis of which a reasonable person could reasonably form the belief that income chargeable to tax has escaped assessment – thus, there was no reason to interfere in the notice of reassessment u/s 148 of the Act – Decided against Assessee.
|