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2020 (1) TMI 300 - HC - Income TaxReopening of assessment u/s 147 - Validity of reasons to believe - HELD THAT:- The phrase “Reasons to Believe” does not mean that the AO should have ascertained the facts by legal evidence. All that is required is that, the AO should prima facie have some material on the basis of which there should be reasons to believe of certain incomes chargeable to tax escaping assessment. There need not be any concrete evidence or proof available for coming to a final conclusion. It is only an initiation of proceedings of reassessment where the assessee gets a chance to put forth their defence, explanation and justification which would further be scrutinized by the AO while reaching to the final conclusion. One should not loose sight of the fact that the final assessment on the conclusion of a proceedings under Section 147 is also an appealable order wherein also the assessee has a right to agitate or challenge the order passed by the AO on a proceeding under Section 147 of the Act. If we look into the proceedings under challenge, it would clearly reveal that there are sufficient reasons given by the Assessing Officer, which according to him is “Reasons to believe” of an income of more than ₹ 87 Lakhs, which are chargeable to tax has escaped assessment and which has come to the notice of Department at a later stage in the course of scrutiny. Given the said facts and circumstances of the case, this Court has no hesitation to reach to the conclusion that there was sufficient material available before the authority concerned for initiating a proceeding under Section 147 of the I.T. Act and the same cannot be held to be bad in law as the proceedings drawn by the Assessing Officer seems to be with sufficient material in record showing income, which otherwise is chargeable to tax having escaped assessment.
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