TMI Blog1998 (5) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... cted to the reopening of the assessment and requested for supply of the reasons on the basis of which the notice under section 148 of the Act was issued. The reasons for reopening the assessment which have since been supplied to the petitioner are these : "Reasons for obtaining approval to issue a notice under section 148 of the Income-tax Act, in the case of Shri Rattan Gupta, C.A., assessment year 1990-91. The assessment for the assessment year 1990-91 was completed under section 143(3) of the Income-tax Act, 1961, on January 28, 1993, at an income of Rs. 88,440 as against returned income of Rs. 72,940. Subsequently, a letter No. 18-M of 1990-91/Inv 19(1) of 1992-93 of 595 dated February 17, 1993, has been received from the ACIT, Inv. Cir. 19(1), New Delhi, wherein it has been intimated that the assessee is earning income in benami names and money totalling Rs. 15 crores approx., in the form of bank drafts purchased in smaller towns of the country by four Sikkim companies floated by the Dalmia group was received in the office of the assessee. Further, search and seizure operations were conducted in the case of the assessee on March 15, 1990, in the course of which certain cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondents, that there is sufficient material on record for the Assessing Officer to form a reasonable belief for issue of notice under section 148 and that the sufficiency of the material cannot be challenged by the petitioner. The reasons reproduced above, inter alia, refer to receipt by the Assessing Officer of letter dated February 17, 1993, from the ACIT, Investigation Circle 14(1), New Delhi, stating that the assessee is earning income in benami names and money totalling Rs. 15 crores approximately in the form of bank drafts purchased in smaller towns of the country by four Sikkim companies floated by the Dalmia group was received in the office of the assessee and further in search and seizure operations conducted on March 15, 1990, certain cash and jewellery was found but it was not seized whereas books of account and other documents were seized. It is further stated in the reasons that, in order to properly conduct the investigation to find out the involvement of the assessee in the transactions of the money amounting to Rs. 15 crores and to ascertain the extent of concealed income of the assessee and to bring the same to tax reopening of the assessment is imperative. The l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this view, the only question that remains to be examined is whether there was any material before the Assessing Officer for forming the reasonable belief that the income of the assessee had escaped assessment or he was only making roving and fishing enquiries. Mr. Bajpai in support of the contention that there was no material for forming the reasonable belief that the assessee's income had escaped assessment, vehemently contends that the material relied upon, namely, the letter dated February 17, 1993, and the appraisal report has no rational connection or live link with the formation of the requisite belief. It is also submitted that the letter dated February 17, 1993, in fact suggests an enquiry to find out if there was any involvement of the assessee at all and, therefore, the said letter cannot be made the basis for formation of the requisite belief for issue of the impugned notice. Further, it is pointed out that in fact the letter suggests that investigation has to be carried out in the case of companies of the Dalmia group and only if the Department failed to tax those companies action may be taken against the assessee. Strong reliance has been placed by learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the opinion sought to be questioned by the petitioner. Further, it appears from the communication dated January 28, 1993, sent by the Assistant Commissioner of Income-tax, Investigation Circle 19(1) to the Income-tax Officer, Ward 13(5), that on May 30, 1990, a search was carried out at the locker held in the name of the petitioner and his wife in which the jewellery and the cash as stated in the letter were found. The cash was seized and was surrendered by the wife of the assessee. The jewellery was released to her. On the facts of the case before us neither can it be held that there was no material for formation of requisite belief for issue of notice under section 148 of the Act nor is it possible to hold that the Assessing Officer did not form the requisite belief about the involvement of the assessee and he was only making roving and fishing enquiries to find out whether the assessee was involved or not. Reference may be made to the decision of the Supreme Court in the case of ITO v. Purushottam Das Bangur [1997] 224 ITR 362, relied upon by Mr. Jolly. In this case too, the information for formation of the opinion by the Income-tax Officer was laid in the letter of the De ..... X X X X Extracts X X X X X X X X Extracts X X X X
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