Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (1) TMI 852 - HC - Income TaxReopening of assessment - no business loss could be claimed as the petitioner had not carried out any business activity during the year - Held that:- AO had come to a reasonable belief that no business loss could be claimed as the petitioner had not carried out any business activity during the year. This is also supported by notes to the account filed along with the Return of Income which indicates that the petitioner did not carry on any business activity during the year. This fact would form the basis for reasonable belief that income chargeable to tax has escaped assessment. In as much as expenditure which has nothing to do with the business is being claimed as business expenditure. At the stage of issuing a notice all that the Assessing Officer has to reach is a prima facie view that the income chargeable to tax has escaped assessment and there must be reasons for that belief. It is not expected of the Assessing Officer to have a castiron case before exercising jurisdiction to issue reopening notice. All that is required is reasonable belief. It is likely that on a fuller consideration, the Assessing Officer may reach a different conclusion. But the likelihood of a different view when material exist of forming a belief will not justify our stopping the Assessing Officer for exercising jurisdiction to assess the petitioner on the reopening notice. No restrain the Assessing Officer from proceeding further with assessment pursuant to the impugned notice dated 5th October, 2015. - Decided against assessee
|