TMI Blog2021 (9) TMI 1006X X X X Extracts X X X X X X X X Extracts X X X X ..... d the reasons in writing with independent application of mind. He is expected to form only a prima facie opinion or belief and therefore, according to the respondent, presently no interference is desirable. The rejoinder affidavit is also filed denying all these aspects and also calling various decisions. The Court has heard extensively both the sides and also examined the material on record. It also called for the details of the FIR filed by the CBI. Since the Court was disinclined to entertain this petition, learned advocate Mr. Mehta has, on instruction, chosen to withdraw this petition. - R/SPECIAL CIVIL APPLICATION NO. 20740 of 2019 - - - Dated:- 20-9-2021 - HONOURABLE MS. JUSTICE SONIA GOKANI and HONOURABLE MR. JUSTICE RAJEN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The petitioner is a Private Limited Company being assessed to tax for last several years under the said Act. The respondent is the Assessing Officer (hereinafter referred to as AO ) who had issued the impugned notice under Section 148 of the said Act for the Assessment Year 2012-13 stating that income for that year has escaped assessment and asking the petitioner company to file its return of income. 2.2. The company declared its income in the return of income on 28.09.2012 declaring the same to be ₹ 11,28,100/- and book profit of ₹ 11,34,539/- under Section 115(JB) of the said Act. The statement of total income accompanying the return and audit report along with the relevant part of 3DC report are also placed on record. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 148 of the said Act stating that the income had escaped assessment for the Assessment Year 2012-2013 and asked the petitioner to file the return. The respondent was also supplied a copy of the reasons recorded which had been objected to. 2.7. According to the petitioner, the only basis of the reason is the credible information, however, the AO has not mentioned the source of information. The base of this allegation is unsustainable according to the petitioner because merely having financial transaction between one or more entities by bank and also knowing the nature of business in which the parties doing trading of chemicals, detergent raw materials and computer hardware would not amount to escapement of any income from the net of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank accounts. 3.2. According to the respondent, the fact of assessee being involved as a medium for circuitous transaction of rotation of undisclosed income of directors of certain companies and was noticed subsequently upon verification of information. No details in relation to nature and source of the credits were verified at the original assessment stage and therefore, the case was reopened under Section 147 of the said Act after verification of the case record and upon verification of information received from Deputy Director of the Income Tax (investment), Unit-2(1), Ahmedabad by the AO. The AO with independent application of mind and satisfaction has reason to believe with regard to escapement of income after referring and correl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of funds among inter related parties having common management and address. This information also emphasized that the income chargeable to tax has escaped assessment. The AO with independent application of mind has reopened and the instant proceeding under Section 147 have been initiated after deriving at a satisfaction by the AO. He has also recorded the reasons in writing with independent application of mind. He is expected to form only a prima facie opinion or belief and therefore, according to the respondent, presently no interference is desirable. 4. The rejoinder affidavit is also filed denying all these aspects and also calling various decisions. 5. The Court has heard extensively both the sides and also examined the material on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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