TMI Blog2017 (5) TMI 1682X X X X Extracts X X X X X X X X Extracts X X X X ..... suspects that the income has escaped assessment. But mere suspicion is not enough. The reasons to believe must record reasons, the reading of which should demonstrate, that such a reasonable belief could be formed on some basis/foundation and was in fact formed by the Assessing Officer that income has escaped assessment. - Decided in favour of assessee. - D.B. Income Tax Appeal No. 333/2009 - - - Dated:- 29-5-2017 - MR K. S. JHAVERI AND MR VIRENDRA KUMAR MATHUR, JJ. For The Appellant (s) : Mr. K.D. Mathur for Mr. R.B. Mathur For The Respondent (s) : Mr. Sanjay Jhanwar with Ms. Archana JUDGMENT 1. By way of this appeal, the appellant has assailed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts as called for and case was discussed with him. 4. The AO while considering the case has considered all the facts and observed as under:- I have carefully considered the above submission of the assessee but do not accept the same. In the annexure II to the auditors report for finance year 2002-03 at para 19 as per clause 12 of Rajasthan power sector reforms transfer scheme 2000, if any dispute, difference or issue arises in regard to the transfer under scheme, subject to the provision of the Act, the decision of the State Government there on shall be final. However, the Co. has shown the allocation error by way of adjustment of allocation error in profit loss account. Thus, expenditure ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13. The prior period expenses are eligible for deduction during the current year provided the liability was determined and crystallized during the relevant year. 14.The reason to believe recorded by the Assessing Officer that the assessee has debited a sum of ₹ 1,20,765 in the P L account on account of prior period expenses after netting income of ₹ 30,34,463/- and expenditure of ₹ 31,55,228/- has not been crystallized during the year 2001-02 relevant to the assessment year 2002-03 such prior period expenses should have been disallowed is not based on any material that had come to the knowledge of the Assessing Officer. The Assessing Officer has placed reliance on the no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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