TMI Blog2018 (2) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... or change the reasons recorded. The reasons for reopening notice under Section 148 of the Act for reopening notice as recorded at the time of issuing the reopening notice under Section 148 of the Act must be clear and have to be read strictly. Therefore, the submission made on behalf of the Revenue that these was a mistake in the reasons recorded and an attempt to substitute the reasons being made orally by the Revenue, cannot be accepted. Moreover, we find that the reasons as recorded do not indicate any reasons to believe that income chargeable to tax has escaped assessment. It is more in the nature of seeking to find out after reopening the Assessment whether there are reasons to believe that income chargeable to tax has escaped Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apital gains both long and short term on shares listed on the Indian Stock Exchange. The Respondents filed their returns of income for the subject Assessment Year and all of them claimed their capital gains is not taxable in view of Section 90 of the Act read with Article 14 of the Indo Denmark Double Taxation Avoidance Agreement (DTAA). 4 The Appellant-Revenue processed the return of income filed by the three Respondents under Section 143(1) of the Act. Thereafter, notices dated 16th March, 2011 were issued by the Assessing Officer to all the three Respondents under Section 148 of the Act, seeking to reopen the Assessment for Assessment Year 2006-07 of each of the three Respondents. As an illustration, we reproduce the reasons for reope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t for exempt the tax law of Luxumberg). Then the assessee is taxable in India in respect of the capital gain earned in India during the previous year relevant assessment year 2006-07. The possibility of AOP is not a taxable unit under the tax law of Denmark may not be ruled out. Accordingly, possibility of loss of revenue of ₹ 46214144 (11.2% of 411890769) may also not be ruled out. In view of these, I have reason to believe that income chargeable to tax of ₹ 4621411 (11.2% of 41189076) has escaped assessment within the meaning of provision of section 147. Issue notice u/s. 148 of the I. T. Act. Sd/ (Dr. SatyaPal Kumar) D.D.I.T. (IT), 3(1), Mumbai. It is an admitted position between the partie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o tax has escaped assessment. It holds that the reasons recorded merely proceed on presumption and surmise without any tangible material that whether or not, Assessee is a taxable unit in Denmark and that income chargeable to tax has escaped Assessment. The impugned order holds that reasons recorded completely ignores the fact that the tax residency certificate was filed by the three Respondent-Assessees and was evidence of all the three Respondents being taxable units in Denmark. 8 Mr. Tejveer Singh, learned Counsel for the Revenue submits that the word 'possibility' in the reasons recorded in the sentence The possibility of AOP is not a taxable unit under the tax laws of Denmark may not be ruled out is a mistake. It is submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issuing the reopening notice under Section 148 of the Act must be clear and have to be read strictly. Therefore, the submission made on behalf of the Revenue that these was a mistake in the reasons recorded and an attempt to substitute the reasons being made orally by the Counsel for the Revenue, cannot be accepted. Moreover, we find that the reasons as recorded do not indicate any reasons to believe that income chargeable to tax has escaped assessment. It is more in the nature of seeking to find out after reopening the Assessment whether there are reasons to believe that income chargeable to tax has escaped Assessment or not. 10 Therefore, in the above view, the impugned order dated 31st October,2014 calls for no interference. The impu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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