TMI Blog2017 (4) TMI 620X X X X Extracts X X X X X X X X Extracts X X X X ..... er has given complete details of the documents which were not taken into consideration earlier. The documents referred in the notice are also sufficient to show the direct nexus between the information in possession and conclusion withdrawn by the Assessing Officer. The Assessing Officer though was not having fresh material for the purpose of formation to believe that the income of any particular assessment year has escaped assessment, but with all bonafides he noticed that certain documents escaped consideration and that resulted into escape of income chargeable to tax. Learned Single Bench in detail has considered the entire law relating to pre-conditions for reassessment under Section 147/148 of the Act of 1961, but in our considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the petitioner assessees. As per learned Single Bench the expression reason to believe as referred under Section 148 of the Act of 1961 means the existence of rational and intelligible nexus between the reasons and the belief, so that on such reason no one properly instructed on facts and the law could reasonably entertain the belief. On basis of this ratio learned Single Bench held that while issuing the notices under Section 147/148 of the Act of 1961 the Assessing Officer had no reason to believe that any income chargeable to tax has escaped assessment for the assessment year and the Assessing Officer simply for his own verification and to clear his doubts and suspicion initiated the proceedings impugned. We are in complete agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment under Section 153-A read with Section 143(3) of the Act of 1961 came to be completed by making certain additions of income tax in the hands of Mukesh Modi, Daksha Kumari Jain and Bharat Das Vaishnav. The assessments made by the Assessing Officer as above are admittedly subject matter of appeals said to be pending before the Commissioner of Income Tax (Appeals). The Assessing Officer on 22.3.2013, while recording reasons to reopen the assessment under Section 147 of the Act of 1961, issued notices under Section 148 of the Act of 1961. While giving challenge to the notices aforesaid the petitioners contended that no cogent reasons were recorded by the Assessing Officer and whatever reasons recorded suggest that the Assessing Officer ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t satisfying the pre-requisites as prescribed. To examine the entire issue, we have looked into the notices issued under Section 147/148 of the Act of 1961. The Assessing Officer, at the threshold, noticed that during the course of search several incriminating documents alongwith cash, jewelery and other valuables were found and seized from various premises of the group concerned. During the course of survey an inventory of the consumable items, details of bank accounts, cheque books found, was also prepared. The material made available was not matched by the survey team as the same were not verifiable from the records. He also noticed that the cheque books, bank accounts etc. were belonging to various persons which are not con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce in specific terms indicate the material to arrive at a conclusion to have bonafide belief that a huge part of income which may be chargeable to tax was escaped. Looking to the document aforesaid we are of considered opinion that the Assessing Officer had adequate reason to believe to issue notice under Section 148 of the Act of 1961. Learned Single Bench failed to appreciate the notice concerned in light of the scope and spirit of the pre- conditions for issuing a notice under Section 148 of the Act of 1961. The appeals, thus, deserves acceptance, hence, are allowed. The judgment impugned dated 11.4.2014, passed by learned Single Bench, is set aside. The writ petitions preferred by the petitioner respondents are dismissed. - - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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