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2006 (4) TMI 555 - AT - Income TaxReopening of the assessment - assumption of jurisdiction u/s 148 - non-satisfaction of the condition precedent - HELD THAT:- In the present case in appeal, the proforma in which reasons are recorded reveal that the ld CIT has conveyed his satisfaction merely by stating "yes" to the reasons recorded in the same report. No separate reasons disclosing satisfaction of the Assessing Officer for formation of belief that income of the assessee has escaped assessment has been recorded. He appears to have only a vague feeling that the assessee had taken bogus entry of capital gains and did not come to prima facie conclusion that the transactions to which he referred are not genuine transactions. There is however a distinction in the reasons recorded and the report of Assessing Officer seeking approval in the proforma. Thus the requisite satisfaction disclosing reasons envisaged u/s 148 not being available on record and having regard to the judgment of Supreme Court in the case of Chhugamal Rajpal v. S.P. Chaliha [1971 (1) TMI 9 - SUPREME COURT], the initiation of proceedings are held vitiated and notice so issued under section 148 is directed to be quashed and assessment made is annulled. Having annulled the assessment, I do not consider necessary to render any decision in the merits of other grounds in appeals. In the result, both the appeals stand allowed.
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