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2016 (12) TMI 354 - HC - Income TaxAddition on the basis of reassessment notice - reasons to believe - ITAT felt that the reopening was unwarranted - Held that:- The expression “reason to believe”, was the subject matter of extensive discussion by full bench of this court reported as Commissioner of Income Tax vs. Kelvinator of India Limited(2002 (4) TMI 37 - DELHI High Court ). The full bench laid down by reasoning prepositions as to what can constitute valid “reason to believe”. The Supreme Court considered the correctness of that judgment. The court held that the information received by the assessing officer after completion of assessment alone is “the sound foundation for exercising the power under Section 147 read with Section 148”. In these circumstances, the arguments of the revenue that the previous contrary ruling in ALA Firm’s case (1991 (2) TMI 1 - SUPREME Court ) continues to govern the field cannot be countenanced. The judgment in ALA Firm’s case (supra) concerned an assessment for the year 1961-62. Section 147 was amended in 1989. Consequently, the declaration of law in ALA Firm’s case (supra) was of the pre-existing law. The law as exists was dealt with in Kelvinator of India Limited’s case (supra) which has pronounced the correct position decisively. So far as the judgment in Giri Lal’s case (2016 (8) TMI 1010 - SUPREME COURT) goes, the court notices that the assessee had challenged the reopening – which was rejected by the High Court. The order as it were is a mere confirming one and has not discussed or dealt with the previous authority in Kelvinator of India Limited’s case (supra) which is a judgment in terms of Article 141 of the Constitution and per se binding having regard to the larger bench composition. No substantial question of law
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