TMI Blog2007 (5) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year 1996-97. By the impugned order, the Tribunal took the view that the reassessment proceedings carried out by the Assessing Officer in terms of sections 147/148 of the Income-tax Act, 1961 (the Act) lacked in valid jurisdiction and were, therefore, liable to be set aside. After hearing learned counsel for the parties, we admit this appeal and frame the following substantial question of law for consideration: "Whether the Income-tax Appellate Tribunal was correct in law in holding that the notice issued by the Assessing Officer under section 148 of the Income-tax Act, 1961, was bad in law and, therefore, the assessment framed in pursuance thereof was liable to be quashed?" Filing of paper books is dispensed with. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nk account and most of the beneficiaries have availed of relief under section 54F of the Income-tax Act, 1961. Some of the beneficiaries like firm/company took capital losses to offset their business gains. The name of Shri Vipin Batra is included in the list of beneficiaries from the said account of M/s Maheswari Sons in the form of following transaction having received the said amount in his bank account No. 10007 with Syndicate Bank, Mori Gate, Delhi. -------------------------------------- S.No. Date of taking entry Amount -------------------------------------- 1 27-5-1995 1,27,650 -------------------------------------- There was a reason to believe that income of the assessee from undisclosed sources ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e one of a mere change of opinion by the Assessing Officer or the drawing of a different inference from the same facts but that those reasons must be based on facts which have subsequently come into the possession of the Assessing Officer. (d) The sufficiency of reasons for forming the belief is not for the court to judge although the assessee can contend that the belief was not bona fide or was based on vague, irrelevant and non-specific information or that the material did not have any rational connection or a live link for the formation of the requisite belief. This is what the Supreme Court said: "From a combined review of the judgments of this court, it follows that an Income-tax Officer acquires jurisdiction to reopen an assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be formed by the Income-tax Officer and further whether that material had any rational connection or a live link for the formation of the requisite belief." This court also had occasion to deal with the issue of reopening a completed assessment in United Electrical Co. P. Ltd. v. CIT [2002] 258 ITR 317. This decision has been relied upon by the Tribunal but we find that it is clearly distinguishable because in that case the Division Bench came to the conclusion that the statement on the basis of which reopening was sought was too general and it did not mention any name, much less the name of the assessee. It was, therefore, held that there was no information on record which could provide a foundation for the Assessing Officer's beli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entered into through an identifiable bank and an account number. The truth or otherwise of this information is not a matter that is required to be considered by us. All that we have to see is whether there was sufficient material and that it was not vague or of a general nature. We are satisfied, on the basis of the information disclosed in the reasons to believe recorded, by the Assessing Officer, that there was legitimate ground for him to issue a notice to the assessee under section 148 of the Act and the assessee was entitled to contend that the facts taken into consideration by the Assessing Officer were incorrect. We find that the Tribunal has not gone into the merits of the controversy. Therefore, while answering the question in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
