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TMI Blog2012 (5) TMI 202X X X X Extracts X X X X X X X X Extracts X X X X ..... sport charges received but payment for Transport charges was not considered." 2. The assessee vide an application dated 27.01.2012 has also filed an additional grounds challenging the validity of initiations of proceedings u/s.147 reading as under :- "1. The reassessment framed by the Assessing Officer is bad, illegal and void as the necessary preconditions for initiating reassessment proceedings and completion thereof were not fulfilled. 2. It is submitted that there was no reason to believe that any income had escaped assessment within the meaning of section 147." 3. The additional grounds as has been raised by the assessee is purely a legal ground and all the relevant documents and facts for adjudication of such a legal ground is ava ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of notice u/s.154 or in pursuance of notice u/s.143(2) and no orders were passed. At the fag end of the sixth year, a notice u/s.148 dated 24.03.2009 was issued by the A.O. to the assessee which was received on 28.03.2009. The said notice was duly responded to by the assessee by filing of return on 28.04.2009 at an income of Rs. 3,42,553/- which was almost at the same income filed originally. 5. The learned AR on behalf of the assessee submitted that the copy of "reasons recorded" could not be made available earlier by the department and the same has been made available only on the last date of hearing before the ITAT. The "reasons" as have been recorded which has been filed before us at the time of hearing reads as under :- "The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o more than Rs. 1 lakh. Hence to issue notice u/s.148 of the I.T. Act, 1961 for the A.Y. 2002-03 approval of Addl. CIT Range-9(2), Mumbai is needed as per the provision of section 151(2) r.w.s. 149(1)(b) of the I.T. Act, 1961." The proposal in prescribed proforma is put up for grant of approval to issue the notice u/s.148 of the I.T. Act, 1961." 5.1 The learned AR submitted that the contents of the "reasons recorded" and the contents given in the notice issued u/s.154 earlier, are almost similar and, therefore, on the same ground, reopening u/s.147 cannot be done. He further submitted that all the relevant details on which the reopening has been initiated u/s.147, have been duly shown in the profit and loss account. He drew our attention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me have been initiated rightly within the period of 6 years. Thus the legal issue as have been raised by the assessee cannot be sustained. 7. We have carefully considered the rival submissions of the parties and also carefully gone through the materials placed on record. From the facts narrated in the foregoing paragraphs it is seen that after intimation u/s.143(1), a notice u/s.154 was issued on two grounds which has been incorporated by us in the foregoing para and both the grounds are also subject matter of "reasons recorded" also for reopening the case u/s.147. Not only this, a notice was issued within the period of 12 months from the end of the month in which the original return was filed for scrutinising the return. Therefore, no ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to these issues had already been placed by the assessee before the A.O. vide letter dated 25.07.2003 in pursuance of notice u/s.154, besides that there is no other grounds or reasons in the "reasons recorded". 8.1 On these facts it cannot be held that the A.O. entertained any "reason to believe" to acquire jurisdiction in this case for reopening the assessment u/s.147. The words "reason to believe" are stronger than the words "is satisfied". The belief entertained by the Assessing Officer must not be an arbitrary or irrational. It must be based on the reasons which are relevant and material. The "reasons to believe" does not mean purely subjective satisfaction on the part of the Assessing Officer. The belief must be held in a good faith ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e A.O. can acquire a jurisdiction for reopening the case u/s.147 and accordingly, on this ground alone the proceedings u/s.147 is quashed. 8.2 The assessee's case is also covered directly by the ratio and law laid down by the Hon'ble Calcutta High Court in the case of Berger Paints India Ltd. (supra), wherein the reassessment u/s.148 was quashed on the ground that if on the same reasons for which the rectification proceedings had been earlier initiated and the A.O. has not disclosed any new material for reopening the case, the notice for reassessment cannot be held to be valid. The relevant ratio as laid down by their lordships are as under :- "However, if the Assessing Officer is of the view that income has escaped assessment by reason o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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