TMI Blog2005 (9) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... ally by consent of parties. In this petition, the petitioner is challenging the notice dated March 31, 2005, issued by respondent No. 1 for reopening assessment for the assessment year 1998-99, under section 148 of the Income-tax Act, 1961 ("the Act" for short). Facts: The petitioner is a co-operative society registered under the Maharashtra Co-operative Societies Act, 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 petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that it has made a provision of Rs. 7,69,40,091 for final bill of the purchase of milk. But it has not mentioned how it has arrived at the said provision of Rs. 7,69,40,091. It appears that the provision of final bill was out of profit and not as business consideration. Whether the payment was made on account of quality or quantity of milk or comparable market price of milk or 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stan Lever Ltd. v. V.K. Pandey, Joint CIT [2001] 251 ITR 209 and Caprihans India Ltd. v. Prakash Chandra [2002] 256 ITR 721. Per contra, Mr. Rao appearing for the Revenue tried to contend that alternate remedy is open to the petitioner; wherein the petitioner can raise objections before the Assessing Officer and the Assessing Officer can be directed to decide those objections raised 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 judgmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for the concerned assessment year. It is for the Assessing Officer to form his opinion. It is for him to put his opinion on record in black and white. The reasons recorded should be clear and unambiguous and should not suffer from any vagueness. The reasons recorded must disclose 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 reason ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
