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TMI Blog2021 (6) TMI 641X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act (hereinafter referred to the "said Act") and the preliminary order dated 21.9.2019 (Annexure-E) passed by the respondent disposing off the objections raised by the petitioner against the said Notice. 2. The short facts giving rise to the present petition are that the petitioner is a Private Limited Company incorporated under the Companies Act and is being regularly assessed to income tax by the Income Tax Department. For the A.Y. 2012-13, a return of income was filed on 29.9.2012 by the petitioner. No scrutiny assessment was filed under Section 143(3) of the said Act. The petitioner received the impugned Notice dated 26.3.2019 issued by the respondent under Section 148 read with Section 147 of the said Act, stating inter alia tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther submitted that the respondent cannot be permitted to carry out fishing or roving inquiry merely for the purpose of verification. There was total non-application of mind on the part of the respondent in reopening the assessment, and therefore, it could not be said that there was a reason to believe on the part of the respondent in initiating the proceedings under Section 147 of the said Act. Mr.Patel has sought to rely upon the unreported judgement of this Court in case of Parth Knitex Pvt. Ltd., Pravinkumar Ramkaran Agarval Vs. Deputy Commissioner of Income Tax Circle 2(1)(1) (Special Civil Application No.21107 of 2017 decided on 27.2.2018) and in case of GKN Driveshafts (India) Limited Vs. Income-Tax Officer and Others, reported in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2017) 83 taxmann.com 82 (Gujarat) to submit that the A.O. having recorded the prima facie findings on the basis of search conducted of Shri Kamal J. Zaveri, it could not be said that there was no tangible material available with the A.O. Mr.Raval has also relied upon the judgement of the Supreme Court in case of Raymond Woolen Mills Limited Vs. ITO &Ors., reported in (1999) 236 ITR 34 (SC) in support of his submission that the sufficiency or correctness of the material could not be considered at this juncture and what is required to be considered is whether prima facie there was some material before the Assessing Officer for reopening of the case of the assessment. 6. At the outset, it may be stated that one of the purposes of Section 14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the A.Y. 2012-13 as the respondent had a reason to believe that the income of the petitioner chargeable to tax for the said assessment year had "escaped assessment" within the meaning of Section 147 of the said Act. The respondent had also supplied the reasons in support of the said Notice, conveyed to the petitioner vide the letter dated 7.5.2019. The petitioner, on 28.7.2019, had filed the objections to the said reasons recorded for reopening the assessment, which have been rejected by the respondent. 8. Now, it appears that the impugned action under Section 147/148 of the said Act has been initiated against the petitioner by the respondent on the basis of the material and the impounded documents recovered during the course of survey a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered at this juncture, as held by the Supreme Court in case of Raymond Woolen Mills Limited Vs. ITO (supra). 12. The Supreme Court in case of ACIT Vs. Rajesh Jhaveri Stock Brokers Pvt. Ltd., reported in (2007) 291 ITR 500 (SC), has also observed that the word "reason" in the phrase "reason to believe" would mean cause or justification. If the Assessing Officer has a cause or justification to know or suppose that income had escaped assessment, it can be said to have reason to believe that an income had escaped assessment. 13. The decision relied upon by the learned Advocate Mr.D. R. Patel for the petitioner in case of GKN Driveshafts (India) Limited Vs. Income-Tax Officer and Others (supra) has no application to the facts of the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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