TMI Blog2002 (4) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... he reasons leading to the initiation of reassessment proceedings, were not required to be communicated by relying on the Supreme Court decision reported as S. Narayanappa Ors. vs. CIT (1967) 63 ITR 219 (SC): TC 51R.651. 3. After show-cause notice was issued in the writ petition, the respondents filed a counter-affidavit to which has been annexed, as Annexure A, the statement of reasons recorded by the ITO, Company Circle-XIV on the file, while requesting for permission of the competent authority for reopening the case for the asst. yr. 1967-68. The recorded reasons may be quoted for convenience of reference: "Original assessment in this case was completed on 29th Feb., 1968, at a total income of Rs.1,05,912. During the course of thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this case the reasons recorded on the file by the ITO, as well as the recorded statement of Sh. Des Raj Sharma is respect of whom payment of interest @ 12 per cent has been claimed by the petitioner in the report filed disowning categorically that he had not received any interest at all, most certain constituted valid material for justifying formation of reason to believe that income chargeable to tax has escaped assessment. As such there is no invalidity or infirmity in the impugned notice under s. 148 of the Act. 6. As regards the impugned communication dt. 29th Oct., 1979, vide which the ITO, relying upon (1967) 63 ITR 219 (SC): TC 51R.651, had conveyed that he was not required to communicate the reasons, said contention no longer sur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e letter were true or not, was not the concern at this initial stage, where only the reassessment notices were under challenge. 9. The Division Bench of this Court in Rattan Gupta vs. Union of India Ors. (1999) 154 CTR (Del) 418: (1998) 234 ITR 220 (Del): TC S51.4093 following the above-mentioned judgment of the Supreme Court, held that at the stage of considering the validity of the notice of reassessment, the question is not whether what is stated in the information or the conclusion drawn, is true or not. The only question at this stage is about the relevantly of the material for formation of the requisite belief. 10. In the present case also there is a categorical statement of Sh. Des Raj Sharma recorded by the IT authorities, b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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