TMI Blog2018 (5) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... ation required deep verification. In plain terms therefore, the notice was being issued for such verification. His later recitation of the mandatory words that he believed that income chargeable to tax has escaped assessment, would not cure this fundamental defect. Revenue however urged us to read the reasons as a whole and come to the conclusion that the Assessing Officer had independently formed a belief on the basis of information available on record that income in case of the assessee had escaped assessment. Accepting such a request would in plain terms require us to ignore an important sentence from the reasons recorded viz. 'it needs deep verification'. - Decided against revenue. - R/Tax Appeal No. 451 of 2018 With R/Tax Appeal No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essment u/s. 143(3) was made. In this case the information conveyed by the DGIT (Inv.) Mumbai dated 22/02/2013 addressed to DGIT(Inv.)Ahmedabad alongwith the Board's confidential letter dated 21/02/2013 to take actions in respect of cases of nogenuine Billsinformation emanating out of VAT Department, Mumbai to the CCITIII, Ahmedabad. The CCITIII, Ahmedabad vide letter dated 20/03/2013 forwarded the same to the CITV, Ahmedabad. The same was forwarded to the O/o. The Jt. CIT, Range11, Ahmedabad by the CITA'badV, Ahmedabad vide letter No.VITV/ Ahd/Inf.VAT/201213/ 6675 DATED 21/03/2013. The Jt. CIT. Range11, Ahmedabad vide letter No.Jt.CIT/R11/ NonGenuine Bills/201213/ 6675 dated 22/03/2013 forwarded the same to this office. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se where the original assessment is made without scrutiny, the requirement of the Assessing Officer forming the belief that income chargeable to tax has escaped assessment, would apply. Reference in this respect can be made of the judgment in case of Inductotherm (India) P. Ltd. v. M. Gopalan, Deputy Commissioner of IncomeTax reported in [2013] 356 ITR 481 (Guj). 7. It is equally well settled that the notice of reopening can be supported on the basis of reasons recorded by the Assessing Officer. He cannot supplement such reasons. The third principle of law which is equally well settled and which would apply in the present case is that reopening of the assessment would not be permitted for a fishing or a roving inquiry. This can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a whole and come to the conclusion that the Assessing Officer had independently formed a belief on the basis of information available on record that income in case of the assessee had escaped assessment. Accepting such a request would in plain terms require us to ignore an important sentence from the reasons recorded viz. ' it needs deep verification'. 11. Before closing, we can only lament at the possible revenue loss. The law and the principles noted above are far too well settled to have escaped the notice of the Assessing Officer despite which if the reasons recorded fail the test of validity on account of a sentence contained, it would be for the Revenue to examine reasons behind it. 12. Both these Tax Appeals are d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
