TMI Blog2015 (6) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... eading to the belief as to the escapement of income is evident and implied. What are these then and for and toward what are they being given, or given as, etc. would be the queries arising out of the assessee’s clearly unreasonable and unconvincing stand. Further, even assuming, without admitting, a debate, it would preclude section 254(2). The said ground is accordingly rejected. Non-application of mind by the Assessing Officer (AO) in the matter, who has stated to have reopened simply on the basis of the findings of the DDIT(Inv.) - Held that:- there was material available with the AO on the basis of which a reasonable belief that income chargeable to tax had escaped assessment could be formed (paragraph 2.12). The same is a finding of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification proceedings. We, accordingly, find no ground for the same. Denial of opportunity to cross-examine the AO’s witnesses and, thus, a violation of the principle of natural justice - Held that: The argument is misplaced. For all we know, the cross-examination may not have been asked for, being in the nature of deposition/s. The tribunal has considered the argument (refer para 3.10), and in its view the disallowance had not been affected only on the basis of the said statements and, two, that all the material had been duly confronted to the assessee. It also clearly states that the rendering of the services by the companies could not be accepted on the basis of affidavits. The said ground is, again, without merit. - Decided against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings. It is, firstly, debatable that where the assessee is informed of the reasons for re-opening of assessment, though employing different words, conveying the same meaning and information, would the requirement of informing the assessee of the reasons be satisfied? The requirement is procedural, with a view to informing the assessee of the Revenue s case against it, so that, would not, secondly, even assuming strict compliance, so that the reasons had to conveyed verbatim, lead to the quashing of the assessment ( or re-assessment) or its restoration to such where the irregularity had crept in (Guduthur Bros. v. ITO [1960] 40 ITR 298 (SC). The forgoing two issues stand noticed by us only to exhibit the debatable nature of the controversy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of which a reasonable belief that income chargeable to tax had escaped assessment could be formed (paragraph 2.12). The same is a finding of fact, and for which the tribunal tranverses, as apparent from the discussion, through the said materials, issuing its final findings at paragraph 2.15. The assessee has also, vide ground 3(iii) referred to the tribunal s observation that assessment had been reopened on the basis of section 132(4) statement made at the time of search which was on oath (at paragraph 2.14). It is stated that in so stating, the tribunal has overlooked that there was a survey at the vendor s premises prior to the relevant search. How would, we wonder, that contradict or impugn the said observation by the tribunal in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. In fact, there were 53 other parties, i.e., as the assessee, who had surrendered income consequent to the search (a number which the assessee confirms to be at 21, i.e., instead of 53). In fact, rather than the assessee proving the expenditure, as we see it, the tribunal considered the same to have been disproved. The relevant discussion appears at paragraphs 3 through 3.14 (pages 18- 30) of the tribunal s order. That documentary evidences may not by themselves be sufficient and could be unveiled by the assessing authority, is trite law, and for which reference may be made to the decisions in the case of CIT v. Durga Prasad More [1973] 82 ITR 540 (SC) and Sumati Dayal v. CIT [1995] 214 ITR 801 (SC), while the tribunal refers to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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