9911796707
TMI Blog2014 (2) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... -08. The petitioner also seeks for an appropriate writ calling for the relevant records in respect of the assessment year 2007-08 and consequential direction to quash the demands claimed by the Income-tax Department through its impugned order dated March 25, 2013. The brief facts necessary for deciding the petition are that the assessee reported, through its Income-tax return dated October 29, 2007, a total income of Rs. 58,73,098. On September 27, 2008, during the course of finalisation of the assessment a notice was issued under section 143(2) of the Income-tax Act, 1961, seeking certain clarifications and the return was thus taken up for scrutiny. Eventually the assessment was made by an order dated November 18, 2009, and a demand for R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing fully and truly all material facts necessary of the assessment proceedings at the time of assessment under section 143(3). Hence, the assessment proceedings need to be reopened under section 147 of the Income-tax Act." The petitioner resisted the assumption of jurisdiction to reassess the income contending that it adopted the accounting practice regularly in the preceding years and said so in response. It also relied on the ruling in CIT v. Kelvinator of India Ltd. [2010] 320 ITR 561 (SC). The reassessment order was finalised on March 21, 2013, and a demand of Rs. 60,83,817 was made. It is contended by the petitioner's counsel "who reiterates the grounds urged in respect of these proceedings" that the rationale of issuing notice un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... constitutes "reasons to believe". The Supreme Court there had an occasion to deal with the law existed prior to the amendment of 1989 in comparison of the present state of law. The court was of the opinion that even though the statute is apparently wider, the controlling expression, i.e., "reasons to believe" necessarily refers to some objective set of circumstances. In other words, the material or objective facts should pertain to something discovered by or made known to the Assessing Officer subsequent to the original assessment made. It was emphasised by the Supreme Court in its judgment that to accept the Revenue's contention based upon a purely textual interpretation of the provision would in fact result in a disguised review of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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