TMI Blog2010 (10) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... believe that tax has escaped, reassessment is permissible. Reasons can be even on the basis of particulars of the return without any new material. Even if proceedings under s. 143(2) are not taken, reassessment proceedings can be taken. In the present case, the CIT(A) set aside the proceedings by wrongly holding that reassessment could not be initiated on the basis of material already disclosed in the return without going into the correctness of the reasons - prima facie the reasons for reassessment are not irrelevant. In any case, the same could have been gone into by the CIT(A) before reassessment was set aside as rightly held by the Tribunal - the view taken by the Tribunal cannot be held to be erroneous. No substantial question of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stment in shares account. (iv) The assessee was a director in a company and has shown the liability to the company without showing any income. 3. After issuing a questionnaire and considering the viewpoint of the assessee, order of reassessment was passed making additions of Rs. 95,83,013 to the declared income. On appeal, the CIT(A) set aside the reassessment order only on the ground that jurisdiction to reassess was not validly invoked. On further appeal, the Tribunal set aside the view taken by the CIT(A) and remanded the matter for fresh decision on merits. The finding recorded by the Tribunal is as under:- "Keeping in view the facts and circumstances in the present case and after hearing both the parties, we are of the cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgment of jurisdictional High Court in the case of CIT vs. Suresh Kumar L/H of Siri Ram (2005) 196 CTR (P and H) 507 : (2005) 275 ITR 253 (P and H) and various judgments rendered by the Tribunal, in which they have discussed the validity of reassessment and held that even though the original assessment was made under s. 143(1) and not under s. 143(3) of the IT Act, assessee having made full disclosure of its income and AO was not justified in reopening the assessment in the absence of any new material. They held that s. 147 does not postulate conferment of power upon the AO to initiate reassessment proceedings upon a mere change of opinion. The Hon'ble Court also held that if the AO feels that issue requires much deeper scrutiny i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct. Therefore, we are not agreed with the reasons mentioned by the learned first appellate authority for cancelling the reassessment proceedings made by the AO. Accordingly, we cancel the same by allowing the appeal filed by the Department." 4. We have heard learned counsel for the parties and perused the record. 5. Learned counsel for the assessee submits that the reasons for reassessment were not based on a new material but on the basis of the particulars in the return and reassessment amounted to change of opinion and initiating a roving enquiry was not permissible. Reliance has been placed on the following judgments:- 1. Asstt. CIT vs. Rajesh Jhaveri Stock Brokers (P) Ltd. (2007) 210 CTR (SC) 30 : (2007) 291 ITR 500 (SC); ..... X X X X Extracts X X X X X X X X Extracts X X X X
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