TMI Blog2007 (8) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... -2007 - M. M. KUMAR and AJAY KUMAR MITTAL JJ. Sanjiv Bansal for the Commissioner. Ms. Monika Goyal for the assessee. JUDGMENT The judgment of the court was delivered by Ajay Kumar Mittal J. - This reference under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), has been made to this court at the instance of the Revenue by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for brevity "the Tribunal"), arising out of its order dated April 19, 1996, in I. T. A. No. 967 of (Asr.)/1995 relating to the assessment year 1989-90 raising the following question of law : "Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal is right in law in quashing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the reassessment proceedings with issuance of a notice on the assessee concerned. Section 147 empowers the Assessing Officer to assess or reassess income chargeable to tax if he has reasons to believe that the income for any assessment year has escaped assessment. The power conferred under this section is very wide, but at the same time it cannot be stated to be a plenary power. The Assessing Officer can assume jurisdiction under the said provision provided there is sufficient material before him. He cannot act on the basis of his whim and fancy, and the existence of material must be real. Further, there must be nexus between the material and escapement of income. The Assessing Officer must record reasons showing due application of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 34 of the Act of 1922, at one time before its amendment in 1948, are not there in section 147 of the Act of 1961, would not lead to the conclusion that action can now be taken for reopening assessment even if the information is wholly vague, indefinite, far-fetched and remote. The reason for the formation of the belief must be held in good faith and should not be a mere pretence." 6. The Tribunal while allowing the appeal of the assessee came to the conclusion that it was essential for the Assessing Officer before issuing notice to record his own satisfaction on the basis of material and should not have acted merely upon the information received from the survey circle. It was further noticed that the Deputy Commissioner of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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