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2016 (2) TMI 385 - HC - Income TaxBonus payment - reopening of assessment - State price exceeds fair market value which is fixed by the Central Government - Held that:- As under substantially similar circumstances when a group of petitioners approached the High Court complaining about notices for reopening the assessments, the High Court in case of Shree Chalthan Vibhag Khand (2015 (7) TMI 297 - GUJARAT HIGH COURT ) quashed all notices. the Court held and observed that mere payment of cane price in excess of the SMP would not ipso facto and/or per se be said to be distribution of profit. There had to be some tangible material with the Assessing Officer that the excess paid was exorbitant or too excessive or that the same was otherwise not justified. It was observed that while considering the question of taxability of such amount, number of questions would be required to be examined by the Assessing Officer “before forming an opinion and/or a reason to believe that income chargeable to tax had escaped assessment”. It was further observed that a detailed inquiry is required to be conducted by the Assessing Officer. In the said cases since no such inquiry was conducted before forming a belief that income chargeable to tax had escaped assessment, the Court was persuaded to quash the notices. It also observed that the Assessing Officer had relied on the order passed by the CIT(A) in cases of some other assessees. The Assessing Officer could not have borrowed the satisfaction from such order in absence of any application of mind on his part. Since the issues are almost identical and the impugned notices for reopening the assessments have been issued by the Assessing Officers under similar circumstances recording reasons which are materially similar, it would not be possible for us to take a different view. - Decided in favour of assessee
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