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2016 (7) TMI 706 - HC - Income TaxReopening of assessment - "reason to believe" that income chargeable to tax had escaped assessment - whether material collected by the Department and relied upon, namely the entries/notings made as indicated in the loose slip has no nexus to the petitioner and therefore, the entire proceeding should be quashed.? - Held that:- When we analyse the material available on record, we find that it is a case where the enquiry into the matter by the Income-tax Department is still in progress and considering the fact that the Revenue has indicated that the petitioner was a key person having control over the decision making process, it is not appropriate for this court to hold that material produced are not sufficient enough or reliable enough to proceed in the matter. On the contrary, when the law says that sufficiency or correctness of the material is not to be looked into at this stage by a writ court, this court has to leave everything to the Assessing Officer, who, after considering each and every aspect of the matter including the judgments relied upon by the petitioner and the objections to be raised to decide the matter. It is indicated by the Revenue that the petitioner played a key role in controlling the decision making process which ultimately led in eliminating all other companies, shortlisting the two companies in question and it has been held that by acting as intermediate between Nagar Nigam and Commissioner of Urban Administration and Development, the petitioner was indicated in various steps pertaining to award of contract. Therefore, merely, because it is said that the petitioner had gone on deputation he cannot be exonerated of the charges levelled. That being the reason which weighed with the Revenue authorities to proceed further in the matter, therefore, it is not appropriate for a writ court exercising limited jurisdiction in a petition under article 226 of the Constitution at this stage to interfere as enquiry into various aspects of the matter which was the prime consideration which weighed with the Revenue for proceeding in the matter may be required. The Revenue on a just and proper consideration has taken the decision and therefore, we are not inclined to accept this contention advanced by Shri Kishore Shrivastava. In the present set of circumstances we are not inclined to interfere into the matter because for interfering into the matter we will be required to assess the material available on record and say that they are not sufficient enough to proceed in the matter and we find that when the assessment proceedings are still on discharging this function at this stage by this court in a petition under article 226 of the Constitution is not warranted. - Decided against assessee.
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