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2018 (12) TMI 1337 - HC - Income TaxReopening of assessment - seeking sanction from the Principal Commissioner - return filed by the petitioner is accepted without scrutiny - eligibility of reason to believe - Held that:- We are satisfied that the reasons did exist on file, were duly recorded by the Assessing Officer before obtaining sanction from the Principal Commissioner, that the Joint Commissioner perused such reasons and forwarded the same to the Principal Commissioner with his own remarks and lastly that the Principal Commissioner also put his endorsement that it was a fit case for reopening of assessment. The mix up by the Departmental Authorities in conveying reasons twice would not be fetal in the present case. Firstly, it was later set of reasons conveyed to the petitioner which exist on file. Secondly, the earlier communication dated 22nd May, 2018 also concerns the gist of same reasons. So far as the material aspects are concerned, we notice no change. In essence under communication dated 22nd May, 2018 the Assessing Officer had merely conveyed the gist of his reasons to the petitioner. The present case is one where return filed by the petitioner is accepted without scrutiny. The Assessing Officer therefore, would have much wider latitude to reopen the assessment. The reasons recorded by him show that according to the Assessing Officer, the petitioner had invested the cash amount of ₹ 61,34,800/for purchase of an immovable property to be developed by one M/s Soni & Associates. The Petitioner had given a statement to the Police Authority, in which he had made such declaration. The return filed by the petitioner declared a total income ₹ 6,04,017/. It can thus be seen that the Assessing Officer had tangible material at his command to form a reasonable belief that income chargeable tax had escaped assessment. In the result, the petition is dismissed.
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