TMI BlogReopening assessments in case of income escaping assessment.X X X X Extracts X X X X X X X X Extracts X X X X ..... tion No.120), the defects pointed out continued to appear in the proposals sent for reopening assessments under section 147. In this connection attention is invited to the observations of the Supreme Court in the case of Chugamal Rajpal Vs. S.P.Chaliha Others (79 ITR 603). The defects pointed out by the Supreme Court and the defects mentioned in the Board's Circular mentioned above, should be br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt mentioned in the handwriting of a Clerk on a copy of the notice calling off the return of income. Reopening of an assessment without recording the reasons by the I.T.O is bad in law and therefore in all cases such reasons must be recorded in the form. (ii) Sometimes it has been found that the exact income which is believed to have escaped assessment is not mentioned and sometimes if it is men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opened u/s 147(a) or 147(b), it is necessary that at the time of recording the reasons the Income-tax Officer applies his mind and indicates in the form whether the case falls u/s 147(a) or (b). It may be that on the facts of some cases both the sub-sections of section 147 may be applicable. If so, both the sections may be mentioned against item 7 of the form. (v) The issue of a notice u/s 148 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned in a separate sheet attached with the form so that full facts are clearly brought out. In this note the Income-tax Officer should fully bring out the reasons which lead the Income-tax Officer to the belief that income had escaped assessment and that such an escapement was due to the failure of the assessee to file a return or to disclose fully and truly all material facts necessary for hi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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