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2021 (6) TMI 641 - HC - Income TaxReopening of assessment u/s 147 - reopening on the basis of the material and the impounded documents recovered during the course of survey action undertaken by the Investigation Wing, Surat under Section 133A - disposing of objections of assessee - HELD THAT:- In case of CIT Vs. M/s.Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT] it has been held inter alia that the Assessing Officer has power to reopen, provided there is "tangible material" to come to the conclusion that there is an escapement of income from assessment and that reasons must have a live link with the formation of the belief. Our Court has also in similar case, in the case of Aaspas Multimedia Pvt. Ltd. [2017 (6) TMI 557 - GUJARAT HIGH COURT] held that if on the basis of information supplied by/from the office of Principal Director of Income Tax (Investigation), the A.O., has found that the petitioner assessee was the beneficiary of accommodation entries provided by the other assessee, it could not be said that there was no tangible material available with the A.O., to prima facie form an opinion/belief that income of the petitioner chargeable to tax has escaped an assessment. As rightly submitted by the learned Sr. Standing Counsel Mr.Raval, what is required to reopen a case is "reason to believe", the sufficiency or correctness of material cannot be considered at this juncture, as held by the Supreme Court in case of Raymond Woolen Mills Limited Vs. ITO [1997 (12) TMI 12 - SUPREME COURT] In the instant case, the A. O. has disposed of the objections of the petitioner by passing a speaking order considering all legal and factual aspects, which are just and proper, and do not call for any interference by this Court, exercising the jurisdiction under Article 226 of the Constitution of India. - Decided against assessee.
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