TMI Blog2022 (9) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the authorised official on the basis of the material and that the formation of opinion must be honest and bona fide. It cannot be merely pretence. Consideration of any extraneous or irrelevant material would vitiate the belief/satisfaction. The authority must have information in its possession on the basis of which a reasonable belief can be founded that the person concerned has omitted or failed to produce books of accounts or other documents for production of which summons or notice had been issued, or such person will not produce such books of account or other documents even if summons or notice is issued to him - Reasons forming part of the satisfaction note are to satisfy the judicial consciousness of the Court and any part of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the ld.Income Tax Officer, Ward-1(1) Bathinda, (in brevity the AO) order passed u/s 143(3) of the Act date of order 28.07.2015. The hearing of the appeal is fixed as per the order of the ITAT, Amritsar Bench bearing Miscellaneous Application No.24/Asr/2019 which is emanated from ITA 695/Asr/2017. 2 . The brief fact of the case is that the appeal of the assesseewas adjudicated by the ITAT, Amritsar Bench bearing ITA 695/Asr/2017 date of order 30.05.2019. The assessee filed miscellaneous application before the bench for not considering ground no. 1. The miscellaneous application of the assessee was adjudicated and matter is refixed in consideration for hearing of the ground no. 1 of the assessee. The said ground no. 1 of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment u/s 147 of the Act. The assessee received the gift Rs.4 lac from his real brother. After due verification and recorded the statement u/s 131, the reasons were recorded, and reopening was done by the ld. AO. Only the legal ground is point of adjudication before the Bench. 4. The ld. Counsel argued and filed a paper book which is kept in record. The ld. Counsel first point out the recorded reason which is extracted here as below: - Reasons for initiating proceedings u/s 147 of the Income Tax Act, 1961 1. The assessee filed her return of income for the assessment year 2013-14 on 15.03.2014declaring income at Rs. 2,60,590/-. As per computation of income, the source of income is tuition income arid commission income. 2. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the construction thereon. 3.1 Accordingly, I have reasons to believe that the income of Rs.23,84,500/- ( Rs 18,37,500/-+ Rs.1,47,000/- + Rs. 4,00,000/-) of the assessee has escaped assessment for the assessment year 2013-14 within the meaning of section 69 of I.T.Act, 1961 besides any other income chargeable to tax which would have escaped assessment and would come to notice subsequently in the course of assessment proceedings under this section, within the meaning of section 147 of the I T. Act. The ld. Counsel argued that the entire reopening u/s 148 is arbitrary and illegal. 5. The ld. Sr. DR vehemently argued and relied on the order of the revenue authorities. 6. We heard the rival submission and relied on the documents ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such reasons are not extraneous or irrelevant as the officer has to produce relevant evidence to sustain his belief in case the reasons to believe are questioned in court, however, it was argued that the jurisdiction of the High Court is to examine the existence of reasons not the legality of the same. 33. We would like to restate and elaborate the principles in exercising the writ jurisdiction in the matter of search and seizure under section 132 of the Act as follows: (i) The formation of opinion and the reasons to believe recorded is not a judicial or quasi-judicial function but administrative in character. (ii) The information must be in possession of the authorised official on the basis of the material and that the for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dequate or not is not a matter for the Court to review in a writ petition. The sufficiency of the grounds which induced the competent authority to act is not a justiciable issue. (viii) The relevance of the reasons for the formation of the belief is to be tested by the judicial restraint as in administrative action as the Court does not sit as a Court of appeal but merely reviews the manner in which the decision was made. The Court shall not examine the sufficiency or adequacy thereof. (ix) In terms of the explanation inserted by the Finance Act, 2017 with retrospective effect from 1-4-1962, such reasons to believe as recorded by income tax authorities are not required to be disclosed to any person or any authority or the Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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