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2015 (1) TMI 431 - DELHI HIGH COURTValidity of reopening of assessment - Escapement of income - Held that:- time period stipulated for issue of notice under Section 143(2) of the Act had expired and, therefore, the Assessing Officer could have only issued notice under Section 148 of the Act, if the jurisdictional pre-conditions mentioned in Section 147 of the Act were satisfied. The Assessing Officer should have formed a prima facie opinion that income chargeable to tax had escaped assessment and recorded these reasons in writing. The reasons so recorded should have some basis or support and not a mere gossip. The reasons cannot be a mere pretence and should be held in good faith. - Reason to suspect cannot amount to reason to believe. As it is the beginning of the inquiry, having a prima facie opinion is sufficient; and irrebuttable conclusive evidence or finding is not required. But the prima facie formation of belief should be rational, coherent and not ex facie incorrect and contrary to what is on record. As noticed in paragraph 3 above, the facts recorded are incorrect. Secondly, the reasons must have live nexus and must disclose on what basis or evidence the Assessing Officer feels and has reason to believe that income chargeable has escaped assessment. The reasons must be germane and genuine. For grounds elucidated in paragraph 4 above, this requirement falters. The reasons recorded by the Assessing Officer do not meet and satisfy the said basic and limited pre-jurisdictional requirement. There is no rational connection between the reason recorded and the formation of belief that income had escaped assessment. - Decided against Revenue.
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