TMI Blog2016 (7) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 (5) TMI 197 - SUPREME Court) In the instant case, in reasons recorded AO pointed out that from the information received from the investigation wing, one Hawala entry operator stated on oath that he had provided accommodation entries to many companies including assessee company. In our opinion, such reasons cannot be stated to be irrelevant or mechanically recorded. This is not a case for quashing notice for re-opening. Merely because the order disposing of objections raised by assessee does not satisfy the assessee, would not be a ground to invalidate notice for re-opening - Decided against assessee. - SPECIAL CIVIL APPLICATION NO. 4590 of 2016 - - - Dated:- 28-6-2016 - MR. AKIL KURESHI AND MR. A.J. SHASTRI, JJ. FOR THE PETITIO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ish true particular of the income hence, iI have, believed reason that income to extent of ₹ 50,00,000/- has escaped assessment due to failure on the part of assessee to disclose true facts of income, hence it is a fit case for re-opening under section 147 of the I.T.Act, the notice under section 148 is issued after obtaining satisfaction under section 151 of the I.T.Act, 1961 by the competent authority vide No. SRT/JT.CIT/R-2(1)/Approval u/s 151/2014-15 dtd. 24.3.2015. 3. The petitioner filed detailed objections inter alia contending that the companies whose funds are invested in the petitioner company have regular PAN numbers and have sizeable funds. The Assessing Officer however rejected such objections by impugned order at Ann ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stification. If the Assessing Officer has cause or justification to know or suppose that income had escaped assessment, he can be said to have reason to believe that income had escaped assessment. The expression cannot be read to mean that the Assessing Officer should have finally ascertained the fact by legal evidence or conclusion. What is required is reason to believe but not the established fact of escapement of income. At the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could have formed the requisite belief. Whether material would conclusively prove escapement of income is not the concern at that stage. This so because the formation of the belief is within the realm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The expression cannot be read to mean that the Assessing Officer should have finally ascertained the fact by legal evidence or conclusion. What is required is reason to believe but not the established fact of escapement of income. At the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could have formed the requisite belief. Whether material would conclusively prove escapement of income is not the concern at that stage. This so because the formation of the belief is within the realm of the subjective satisfaction of the Assessing Officer. 7. Merely because the order disposing of objections raised by the petitioner does not satisfy the petitioner, would not be a ground to in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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