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TMI Blog2021 (12) TMI 367X X X X Extracts X X X X X X X X Extracts X X X X ..... reopen the assessment for the assessment year (AY) 2009-10. 2. While issuing notice in the petition on 7th August, 2014, this Court directed that reassessment proceeding shall remain stayed till the disposal of the writ petition. 3. The background facts are that the Petitioner is a proprietorship concern, dealing with retail sales of IMFL, mobile phone recharge vouchers business in the name of M/s. Sandeep Enterprises and execution of works contract in the name of R.D. Constructions. The Petitioner filed her return under Section 139 of the IT Act on 30th September, 2009 disclosing total income of Rs. 15,30,040/-. The return was picked up as scrutiny and notices were issued under Section 143 (1) and 142 of the IT Act by the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tails in this regard such as, the name and address of the contractee(s), PAN and TAN etc. It has also not furnished copy of works statement and TDS certificates etc. in the absence of such details/particulars, specifically when there is no identity of the contractee (s), it cannot be said that the gross contract receipt shown at Rs. 37,00,000/- by the assessee is genuine. Hence, the entire amount of Rs. 37,00,000/- shown to have received from execution of civil contract work is required to be added to the total income of the assessee as income from undisclosed sources." 5. Contending that the initiation of the reassessment proceedings was based merely on a change of opinion, the present petition has been filed. 6. Despite notice having be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r books of account in support of the expenses claimed. In absence of regular books of account, the net profit shown from this business cannot be relied upon and the net profit is reasonably taken at Rs. 2,00,000/- as against net profit shown by the assessee at Rs. 1,68,825/-. M/s. R. D. Constructions The assessee apart from the above two business, executes civil contract works and had received gross contract receipts of Rs. 37,00,000/- and disclosed net profit from such business at Rs. 2,33,810/-. The assessee could not produce Cash Book, ledger and bills and vouchers in support of the expenses claimed in the profit and loss account. Hence, I have no other alternative but to estimate the income by rejecting the book result shown by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remained, viz., that where the Assessing Officer has reason to believe that income has escaped assessment, confers jurisdiction to re-open the assessment. Therefore, post-1st April, 1989, power to re-open is much wider. However, one needs to give a schematic interpretation to the words "reason to believe" failing which, we are afraid, Section 147 would give arbitrary powers to the Assessing Officer to re-open assessments on the basis of "mere change of opinion", which cannot be per se reason to re-open. We must also keep in mind the conceptual difference between power to review and power to re-assess. The Assessing Officer has no power to review; he has the power to re-assess. But reassessment has to be based on fulfillment of certain prec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the meaning of the expression, 'reason to believe' had been explained in a number of court rulings in the past and was well settled and its omission from section 147 would give arbitrary powers to the Assessing Officer to reopen past assessments on mere change of opinion. To allay these fears, the Amending Act, 1989, has again amended Section 147 to reintroduce the expression 'has reason to believe' in place of the words 'for reasons to be recorded by him in writing, is of the opinion'. Other provisions of the new Section 147, however, remain the same." 11. Recently, this Court in similar circumstances in a judgment dated 26th October, 2021 in W.P.(C) No.14603 of 2014 (M/s. Sri Jagannath Promoters & Builders v. Deputy Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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