TMI Blog2014 (4) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... es to the beneficiary company which included the assessee as well – Relying upon Commissioner of Income Tax, Delhi Versus M/s. Kelvinator of India Limited [2010 (1) TMI 11 - SUPREME COURT OF INDIA ] - mere change of opinion is not a “reason to believe” to re-open the assessment – there is a distinction between the ‘power of review’ and ‘power to re-assess’ - The reasons recorded have a link with the belief that income has escaped income - The source of information to frame an opinion to reassess the income is the documents seized from S.K. Jain – the documents were not in possession of the AO at the time of framing assessment - The relevancy of the documents is required to be inquired into –Decided against Assessee. - CWP No. 5926 of 2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovided by Sh. S.K. Jain through his different companies which were controlled by him were found and seized. The cash books contained the names of the middlemen through whom the cash was received by Sh. S.K. Jain and in lieu of this cash received he used to provide cheques to the beneficiary companies which in this case is the assessee M/s Piyush Infrastructure (India) Pvt. Ltd. Now this money received through cheque has been introduced in the books of the assessee as share capital/share premium/loan. As per detail available with this office the assessee has obtained accommodation entry during the year under consideration of Rs.1,20,00,000/-. In view of above facts, I have reason to believe and I am satisfied that income chargeable to ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not a case for intervention in the re-assessment proceedings at this stage. A perusal of the record shows that during search and seizure operation conducted on Sh. S.K. Jain on 04.09.2010, certain incriminating documents such as cash books and cheque books leading to unaccounted transport were taken in possession by the Department. The cash book contains the names of the middlemen through whom cash was received by Sh. S.K. Jain and in lieu of this cash, he used to provide cheques to the beneficiary company which included the petitioner as well. It would be matter of investigation as to who was the middlemen who has given the cash to Sh. S.K. Jain and in lieu thereof Sh. S.K. Jain has invested money in the petitioner-company as share-hold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hence, after 1st April, 1989, Assessing Officer has power to re-open, provided there is tangible material to come to the conclusion that there is escapement of income from assessment. Reasons must have a live link with the formation of the belief. Our view gets support from the changes made to Section 147 of the Act, as quoted hereinabove. Under the Direct Tax Laws (Amendment) Act, 1987, Parliament not only deleted the words reason to believe but also inserted the word opinion in Section 147 of the Act. However, on receipt of representations from the Companies against omission of the words reason to believe , Parliament re-introduced the said expression and deleted the word opinion on the ground that it would vest arbitrary powers ..... X X X X Extracts X X X X X X X X Extracts X X X X
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