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TMI Blog2005 (9) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1960. It carries on the business of dairy and allied products at Warnanagar, Taluka-Panhala, District-Kolhapur. The petitioner had filed its return of income for the assessment year 1998-99. On September 22, 2000, respondent No. 1 issued notice under section 143(2) read with section 142(1) of the Act calling upon the petitioner to furnish necessary details. The petitioner, accordingly, supplied all the details asked for and complied with the said notice dated September 22, 2000. Respondent No. 1 vide assessment order dated January 2, 2001, concluded the assessment after taking into consideration all the relevant material sought by him and disclosed by the petitioner. Respondent No. 1, on March 31, 2005, issued notice under section 148 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether there was sufficient cause to make higher payment to milk producers than actual market price is not clear. This fact was neither examined by the then Assessing Officer nor any details were filed by the assessee while assessment proceeding was going on. 2. I have, therefore, reason to believe that the amount of provision supposed to be paid to the producers is a mere division of profit rather than allowable business expenditure and hence the income chargeable to tax to the extent of Rs. 7,69,40,091 has escaped assessment within the meaning of section 147 of the Income-tax Act, 1961." Rival contentions: Learned counsel for the petitioner contends that the notice issued under section 148 of the Act is barred by limitation in view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the petitioner before proceeding with the assessment. He further submits that so far as the merits of the case are concerned, the same can be dealt with by the Assessing Officer. As such the petitioner be directed to appear before the Assessing Officer with liberty to raise objections as canvassed hereinabove. Mr. Rao sought to place reliance on the judgment of the apex court in the case of GKN Drive-shafts (India) Ltd. v. ITO [2003] 259 ITR 19. In rejoinder, learned counsel for the petitioner placed reliance on the judgment of this court in the case of Ador Technopack Ltd. v. Dr. Zakir Hussein, Deputy CIT [2004] 271 ITR 50 to contend that the petitioner should not be relegated to the alternate remedy considering the admitted fact that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lose his mind. The reasons are the manifestation of the mind of the Assessing Officer. The reasons recorded should be self-explanatory and should not keep the assessee guessing for the reasons. Reasons provide link between conclusion and evidence. The reasons recorded must be based on evidence. The Assessing Officer, in the event of challenge to the reasons, must be able to justify the same based on material available on record. He must disclose in the reasons as to which fact or material was not disclosed by the assessee fully and truly necessary for assessment of that assessment year, so as to establish the vital link between the reasons and evidence. That vital link is the safeguard against arbitrary reopening of the concluded assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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