TMI Blog2020 (2) TMI 559X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of jurisdictional High Court in CIT Vs. Smt. Maniben Valji Shah [ 2005 (2) TMI 35 - BOMBAY HIGH COURT] and CIT Vs. Jet Airways (I) Ltd. [ 2010 (4) TMI 431 - HIGH COURT OF BOMBAY] firstly the basic criteria of section 147/148 of the Act is not fulfilled as evident from the action of the Assessing Officer; secondly, there is no rational and intelligible nexus between the reasons and the belief. In such circumstances, we are of the considered view that the action of Assessing Officer in resorting to reopening of assessment and framing the assessment u/s 143(3) r.w.s. 147 of the Act is not valid in law and we accordingly, quash the re-assessment order. Appeals of assessee are allowed. - ITA No.320/PUN/2017, 324/PUN/2017 (Assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 148 of the Act, invited our attention at page 8 of the Paper Book wherein copy of reasons have been provided before issuance of notice u/s 148 of the Act in the case of the assessee. Simultaneously, the ld. AR referred to para 11 of the assessment order u/s 143(3) r.w.s. 147 of the Act and submitted that none of the issues for which the reasons for reopening the assessment which were provided by the Assessing Officer, he has not made any addition on those issues. All the additions were made in respect of some other issues which were not part of the reasons recorded for issuance of notice u/s 148 of the Act. The ld. AR of the assessee contended that reopening of assessment can be done if the Assessing Officer has reason to believe that any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s 147 of the Act. Change or no change of opinion, as argued by the ld. DR, are the factors to be considered after fulfilling the jurisdictional condition of there being an escapement of income, in the absence of which no assessment or reassessment can be made u/s 147. As it is apparent from the above discussion that no valid reasons exist about the escapement of the assessee s income, we hold that the AO was not justified in taking recourse to the provisions of section 147 of the Act. We, therefore, strike down the initiation of assessment proceedings and the consequential assessment order passed u/s 147 of the Act and also the impugned order. 9. In the result, the appeal is allowed. 5. The ld. AR of the assessee also relied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r initiated proceedings u/s 147 / 148 of the Act, however, before completion or at the time of completion of assessment, he probably was convinced that on those issues there has been no escapement of assessed income. That further, in the case of CIT Vs. Smt. Maniben Valji Shah (2006) 283 ITR 453 (Bom), it was held that the important words in section 147 of the Act are has reason to believe and these words are stronger than the words is satisfied . The belief entertained by the Income Tax Officer must not be arbitrary or irrational. It must be reasonable or in other words it must be based on reasons which are relevant and material. That further if there is no rational and intelligible nexus between the reasons and the belief, so that, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o believe that some income has escaped assessment, that belief should lead him to reach a logical conclusion i.e. in the final assessment he should bring those incomes which had earlier escaped from tax, now they should be taxed. In this case, the Assessing Officer fails to do so. None of the issues for which reopening was initiated, no additions are made in respect of them. Taking guidance from the decisions of jurisdictional High Court in CIT Vs. Smt. Maniben Valji Shah (supra) and CIT Vs. Jet Airways (I) Ltd. (supra), firstly the basic criteria of section 147/148 of the Act is not fulfilled as evident from the action of the Assessing Officer; secondly, there is no rational and intelligible nexus between the reasons and the belief. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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