2016 (4) TMI 639

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..... ecording that the concerned assessing officer had reason to believe that the income of the petitioner company chargeable to tax for the assessment year 2008-09 had escaped assessment within the meaning of Section 147 of the said Act. The petitioners protested the notice and demanded that the reasons recorded under Section 148(2) of the said Act should be furnished to the petitioning assessee, particularly since the matter was covered by the first proviso to Section 147 of the said Act. The reasons furnished under cover of a letter dated January 4, 2016 indicated that in course of the regular assessment for the assessment year 2012-13, the assessee company was asked to produce the list of its shareholders regarding the issue of fresh share .....

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..... The submission does not appear to be supported by the statute. Section 147 of the Act records the circumstances in which a reassessment may be initiated. The rules are stricter when the proviso to Section 147 of the said Act comes into play; for, some additional material has to be cited for the belief of the assessing officer that any income had escaped assessment. Section 148 (2) requires reasons to be recorded before a notice is issued under such provision. Section 148(1) makes a notice under such provision mandatory before making the assessment, reassessment or re-computation under Section 147 of the said Act. The process of reassessment is set into motion upon the recording of the reasons by an assessing officer for such assessing offi .....

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..... upon the issuance of a notice under Section 148(1) of the said Act, the reasons recorded prior to the issuance of the notice are the only reasons that can be looked into and no further reasons may be added thereto by any subsequent officer who may have received the case upon its transfer. As to the reasons indicated, there does not appear to be any occasion for the petitioners to complain at this stage. It is common knowledge that dirty money is circulated in the economy and one of the ways of laundering such money without attracting the provisions of the relevant statute is by parking the same in obscure companies with little business activities by investing in shares therein at a huge premium. It is such aspect of the matter which has, q .....

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