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2015 (11) TMI 1074 - HC - Income TaxReopening of assessment - Held that:- In so far as the violation of the principles of natural justice is concerned, it is an admitted fact that the recorded reasons were not given to the assessee. Therefore, the submission that the assessee was prevented from making an adequate representation as regards illegality of the proceedings under Section 147 cannot be lightly brushed aside. There has, in fact, been a violation of the principles of natural justice. We are concerned in this case with the assessment of the assessment order 2000-01 and 2001-02, that is to say, financial year 1999-2000 and 2000-01. The financial year 2000-01 ended on 31st March, 2001 whereas the statement of the assessee was recorded on 20th August, 2004. The questions put to the assessee have been quoted above. Not one question was put to him as to what was his income during the relevant period which is the subject matter of consideration in this appeal. The assessee was asked in August, 2004 as to what was his income, he gave an answer to that. But the present income cannot also be presumed to be the past income. The officers of the revenue could have asked necessary questions but they omitted to do so. When they omitted to do so that may be a pointer to show that they did not have any information as regards any understatement of income by the assessee for that period. If such information was available with them, they would have asked that question. Without asking any question without having any material, they could not have proceeded on the basis that the assessee must have earned the amount. Nothing was shown to us to establish that such a course is permitted by the law. It is wellsettled that statutory authorities must act in accordance with law or not at all. The judgment cited by Mr. Bhowmick does not really assist him because in that case definite information as regards payments received by the assessee and definite information as regards surgeries attended by the assessee were available. Therefore, the facts and circumstances of that case are different than the facts and circumstances of the case before us. Thus the entire proceedings were without any basis. - Decided in favour of assessee.
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