TMI Blog1995 (4) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of investment allowance at Rs. 4,20,35,725 and after adjusting investment allowance and depreciation, net taxable income was determined at Rs. 2,51,66,676. The petitioner got certain reliefs from the appellate authority which attracted the applicability of the provisions of section 115J of the Act. Consequent on the said order for the assessment year 1989-90, the respondent passed an order dated January 20, 1993, giving effect to the said appellate order wherein the respondent computed the total income of the petitioner after taking into account the relief given by the Commissioner of Income-tax (Appeals) at Rs. 2,14,79,040. He com puted the investment allowance available to the petitioner at Rs. 1,86,97,140. After arriving at the total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eciation of Rs. 11.52 lakhs on the cost of assets increased due to exchange rate fluctuation and incorrect set off of investment allowance. I have, therefore, reason to believe that income has escaped assessment to the extent mentioned in the aforesaid para. The assessment was completed under section 143(3) and, therefore, it is covered under the proviso to section 147. Accordingly, I issue notice under section 148 of the Income-tax Act, 1961. The essential requirement for initiating proceedings under section 148 of the Act is that the Assessing Officer must have reason to believe that any income chargeable to tax has escaped assessment for any assessment year. Explanation 2 to section 147 of the Act as appended to newly substituted sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticular provision earlier adopted by the assessing authority. For coming to the conclusion whether there has been excessive loss or depreciation allowance or there has been underassessment or assessment at a lower rate or for applying other provisions of Explanation 2, it must be material and it should have nexus for holding such opinion contrary to what has been expressed earlier. The scope of section 147 of the Act is not for reviewing its earlier order suo motu irrespective of there being any material to come to a different conclusion apart from just having second thoughts about the inferences drawn earlier. If in the light of the aforesaid principles, we read the reasons recorded by the Assessing Officer, it is plain to us that they fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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