TMI Blog2007 (7) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned CIT(A). 2. In ground No. 1 of the appeal, the assessee has disputed the legality of initiation of reassessment proceedings. 3. I have heard the learned representatives of the parties and have perused the orders of the authorities below. I observe that the assessee filed his return of income on 16th Feb., 2001 along with the copy of balance sheet, P L a/c. A copy of the said return al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aimed by the assessee was income from other sources. 4. During the course of hearing, the learned representative of the assessee submitted that the AO has initiated reassessment proceedings in respect of the same very fact that had duly been disclosed by the assessee in the original return filed by him. He further submitted that there is no reasonable belief of the AO that the income chargeable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e submissions of the learned representatives of the parties, am of the view that the action of the AO in initiating reassessment proceedings by issuing notice under s. 148 of the Act is not justified as the AO has not recorded his satisfaction that he has reasonable belief that the income chargeable to tax has escaped assessment. It is, observed that the AO has initiated reassessment proceedings o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no reasons have been recorded by the AO that he had reasonable belief that the income chargeable to tax has escaped assessment. Therefore, I cancel the assessment order passed by the AO under s. 144/147 of the Act, as the AO has not validly initiated the assessment proceedings. Therefore, ground No. 1 of the appeal taken by the assessee is allowed. 7. In ground Nos. 2 to 5, the assessee has disp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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