TMI Blog2002 (10) TMI 248X X X X Extracts X X X X X X X X Extracts X X X X ..... a) on 16th March, 1995, as placed on p. 7 of P.B., simply mention of certain transactions entered into by assessee with M/s Kimatram Dayaldas (for short K.D.), Ahmedabad, being not verifiable from return and hence escapement of income. He has contended that what is required for reopening of assessment and initiation of proceeding under ss. 147, 148 is the existence of "reason to believe", and not mere "reasons to suspect". He has relied on ITO vs. Lakhmani Mewal Das 1976 CTR (SC) 220 : (1976) 103 ITR 437 (SC) and Indian Oil Corporation vs. ITO (1986) 58 CTR 83 (SC) : (1986) 159 ITR 956 (SC). It has been contended that though sufficiency of reasons may not be looked into by the Court, but the very existence thereof can be examined. It has al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such income is chargeable to tax before holding that the AO had reason to believe that any income of assessee chargeable to tax had escaped assessment. It has been contended that in the instant case, no such situation of income chargeable to tax having escaped exists; and the advances are not at all income chargeable to tax. It has also been contended that on change of opinion, reassessment or action under s. 147, for reopening assessment is not permissible. As against this, the learned Departmental Representative of Revenue has relied on the orders of AO. 4. I have considered the rival contentions, the relevant material on record as also the cited decisions. The reasons for behalf of escapement of taxable income, recorded by AO are as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice of AO and the formation of his belief as to the escapement of assessee s taxable income from assessment; but such is not the fact-situation in the instant case. The material, being the letter of DDIT, Ahmedabad to Dy. CIT, Ajmer (though that too has not been referred to by AO in his recorded reasons) too is not only vague and indefinite but it may, at the most, reflect a far-fetched and remote indication, and that too of some loan or advance, but not of any income or taxable income of assessee. In that view of the matter, considering all the facts and circumstances of the case, I find that the reasons recorded by AO, being vague and general and non-specific, do not reflect any rational connection with the requisite belief regarding es ..... X X X X Extracts X X X X X X X X Extracts X X X X
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