TMI Blog2012 (12) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... on her foreign travels during the relevant previous year, the Assessing Officer was justified in invoking the first proviso to Section 147 and in coming to the prima facie belief that there was escapement of income on account of the assessee’s failure to satisfy the requirements of Explanation 1 below Section 147 - notice issued on 28.3.2012 u/s 148 of the Act for the assessment year 2005-06 was within the jurisdiction of the Assessing Officer - AO is directed to dispose of the objections filed by the petitioner within a reasonable time and at any date not later than 30 November, 2012, if not already disposed of. - WP(C) NO. 4022/2012 & CM Appl.8436-8438/2012 - - - Dated:- 19-10-2012 - MR. S. RAVINDRA BHAT AND MR. R.V. EASWAR JJ. Petitioner: Mr. Jayant K. Mehta, Mr. Sukant Vikram and Mr. Abhinav Sharma, Advs. Respondents: Through Mr. Kamal Sawhney, sr. standing counsel] R.V. EASWAR, J.: The petitioner seeks to challenge the validity of the reassessment proceedings in this writ petition, commenced under Section 148 of the Income Tax Act, 1961 by issue of a notice under that section on 28.3.2012. A prayer is also made for quashing of all consequent proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evasion petition. Our attention was drawn to several pages of correspondence and other documents as well as to proceedings in courts in an attempt to show that the respondent No.4 bore a grudge against the petitioner, as a result of which he was using his position in the IRS to harass and embarrass the petitioner. It is therefore, contended that the reassessment proceedings commenced by the issue of notice dated 28.3.2012 under Section 148 are malafide and certainly without jurisdiction. These contentions are stoutly resisted by the ld. standing counsel on behalf of the income tax department. He has produced the relevant official record in support of his contention that the reasons recorded do make out a prima facie case of escapement of income and therefore, the notice cannot be said to be without jurisdiction. He further contends that at this stage, the focus should not be as to whether the reassessment proceedings were commenced with any malafide or oblique motive and that the pertinent issue to be examined would only be whether there was reason to believe that income chargeable to tax had escaped assessment. He contends that the Assessing Officer had reason to believe tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted that she had travelled abroad several times at the time of her husband s employment with M/s. NDTV Ltd. before, during the after her stint in Circle-13(1), New Delhi. Pursuant to the receipt of the copy of the TEP, the matter was independently examined in exercise of independent quasi-judicial discretion by the understigned. It was found that the Returns of Income of Mrs. Sumana Sen an existing assessee in this office for the relevant period i.e. A.Y. 2004-2005, 2005-2006, 2006-2007, 2007-2008 2008-2008(sic) relevant for F.Y. 2003-2004, 2004-2005, 2005-2006, 2006-2007 2007-2008 does not disclose in any manner whatsoever the details and other particulars of her foreign travelling and the expenditure incurred on that including the source thereof, the quantum thereof, the status of that amount of money and taxability of the same. In view of the fact that the particulars pertaining to the expenditure incurred on foreign travels has been admitted before Hon ble Delhi High Court and also before the departmental authorities, prima-facie, a case of non-disclosure of information about expenditure incurred by the assessee in the returns of income stands made out which prima facie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure incurred by the assessee on her foreign travels during the above mentioned period required to be verified to ascertain the correct and full tax payable by the assessee on her taxable income. In view of the facts and circumstances stated hereinabove and the material available on the record of this office, I have reasons to believe that income far in excess of the limit prescribed in law and much more than the limit of Rs.One lakh prescribed in section 149(1)(b) of the Income Tax Act, 1961 has escaped assessment during A.Y. 2005-2006, 2006-2007, 2007-2008 2008-2009 and to bring the escaped income to tax, re-assessment proceedings are required to be initiated for A.Y. 2005-2006, 2006-2007, 2007-2008 2008-2009 U/s 147 of the Income Tax Act, 1961 and notice U/s 148 is to be issued well within the limitation period. It is further highlighted that the complainant in his Tax Evasion Petition has alleged evasion of tax and concealment of income during the period October, 2003 to October, 2007 which is material for A.Y. 2004-2005, 2005-2006, 2006-2007, 2007-2008 2008-2009. Out of this the A.Y. 2004-2005 is no longer open for re-opening in terms of provision U/s 149 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is difficult to say that the Assessing Officer erroneously assumed jurisdiction to reopen the petitioner s assessment. The source of the complaint or the tax evasion petition is not relevant; it is the substance of the contents of the tax evasion petition which has to be examined for the purpose of ascertaining whether therefrom a prima facie belief could have been formed by the Assessing Officer that income chargeable to tax had escaped assessment. The ground on which the assessment has been reopened, as seen from the reasons recorded, is that the petitioner did not disclose the expenditure incurred by her in her foreign travels during the relevant previous year. The reasons recorded refer to the fact that the copy of the employment contract of the petitioner s husband who was employed with NDTV Ltd., or any other document was not available on record to establish the claim of the petitioner that the salary package of Abhisar Sharma, her husband, included foreign travels for him and his family. The reasons also refer to the fact that no documentary evidence was available to show the inclusion of the expenditure involved in the foreign travels in the taxable income of the petitio ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
