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2017 (3) TMI 1238 - HC - Income TaxReopening of assessment - reasons to believe - Held that:- The respondents have placed on record the materials that gave them the reason to believe that there is escapement of Income. The ground for re-assessment is "under-invoicing" which in the opinion of this Court is "sufficient reason" to believe that there is escapement of income. The sufficiency of reasons cannot be gone into in a writ proceedings. The contents of the Invoices have to be ascertained which is a factual issue and to be adjudicate after hearing the assessee. Hence, prima-facie no illegality can be attached to the reasoning of the assessing authority for arriving at a conclusion, that there has been under invoicing and consequent escapement of income. The expression "reasons to believe" indicates a satisfaction that is subjective in nature but such satisfaction must be arrived at and must be based on relevant material. The report by the Commissions and the various invoices relied upon, can by no stretch of imagination be described as irrelevant material. But the issue whether the said 'relevant material' are sufficient to actually re-assess and penalize the assessee can be arrived at only after a through examination of the material and after opportunity to the party. Thus, the same is a fact finding exercise which this court ought not to enter in the exercise of its jurisdiction under Articles 226 of the Constitution of India. The reasoning of the authorities is sound and proper. There being no illegality, the writ petitions assailing the notice and the order on the objection is premature and the proceedings initiated under section 148 of the Act are justified and do not call for interference at the hands of this Court.
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