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2017 (1) TMI 900 - HC - Income TaxValidity of reopening of assessment - reasons to believe - The allegation is of bogus loss from brokers by client code modification being booked in the accounts. - Held that:- The insistence on behalf of the petitioner that the Assessing Officer did not have any material to invoke Section 148, gave reasons for such invocation, and has proceeded to reassess without disposing of the objection raised in respect of such invocation and, therefore, all steps of the Assessing Officer ought to be set aside, is without any basis, in the facts of the present case. AO had received credible information as to income escaping assessment for the relevant assessment year. He had applied his mind to it and had informed the petitioner of his intention to invoke Section 148. He had given his reasons for doing so. AO had reasons to believe that, there was under assessment and that he has reasons to believe that, such under assessment had resulted from non disclosure of materials facts. Both of these two essential conditions are present in this case. The allegation is of bogus loss from brokers by client code modification being booked in the accounts. The reasons supplied by the Assessing Officer as noted above, allows one to infer that, the Assessing Officer had addressed its mind to such issue. The petitioner has not demonstrated any material to substantiate that, such loss was placed before the Assessing Officer for consideration and that, the Assessing Officer had taken a view after production of the material facts by the assessee, before it. - Decided against assessee
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