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2021 (8) TMI 1015 - HC - Income TaxReopening of assessment u/s 147 - validity of the notice issued u/s 148 - case reopened is beyond four years, but within six years - HELD THAT:- In the present case, the petitioner has submitted its objections elaborately and the said objections were disposed of by the respondent by issuing an order and while disposing of the objections, the respondent had considered the objections filed by the petitioner and rejected the objections on the ground that for the AY 2003-04, ADIT, International Taxation, Chennai, issued a Notice u/s 148 on similar ground that claim of the assessee as regards payment made towards geological studies, seismic data acquiring and processing and chartered hire charges would not fall for consideration u/s 44BB of the Act to go for TDA at the rate of 4%. On the contrary, the services fell within the definition of “fee for technical services”. When the AO could able to trace out the material from and out of the materials submitted by the assessee, such new informations or materials undoubtedly would provide the AO for 'reason to believe' to reopen the assessment. This being the factum established, this Court is of the considered opinion that the respondent could able to establish that the AO has 'reason to believe' for reopening of assessment. The other intricacies raised by the assessee on merits are to be adjudicated elaborately with reference to the original documents and evidences to be made available before the authority. Such an elaborate adjudication on merits need not be entertained by the High Court in a writ proceedings under Article 226 of the Constitution of India. In the present case, the reopening is based on certain materials on record, then further adjudications are to be done before the authority based on the materials available on record. The sufficiency of the reasons need not be gone into by the High Court in a writ proceedings. Thus, the petitioner is bound to co- operate for the completion of the reopening proceedings initiated u/s 147/148 of the Act and the respondent is directed to conclude the assessment / reassessment proceedings as expeditiously as possible by following the procedures as contemplated.
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