9911796707
TMI Blog2024 (11) TMI 1388X X X X Extracts X X X X X X X X Extracts X X X X ..... f Income Tax Act, 1961 (for short 'the Act') for Assessment Year (for brevity 'AY') 2009-10 and order dated 20.06.2014 rejecting the objections. 2. The brief facts are that the petitioner filed the Income Tax Return for the relevant year. The assessment under Section 143 (3) of the Act was finalized on 11.10.2011. Notice dated 31.03.2014 was issued under Section 148 of the Act on the ground that petitioner wrongly claimed deduction under Section 54B and there is an escapement of tax on income of Rs. 9,42,296/-. The objections filed by the petitioner were dismissed on 20.06.2014. Hence, the present petition. 3. Learned Senior Counsel for the petitioner submits that the assessment case of the petitioner was selected for scrutiny, questionna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g of assessment on change of opinion. There was no application of mind by AO on the issue of deduction claimed under Section 54-B of the Act. From disclosure of income LTCG in return, it cannot be inferred that the issue of deduction claimed under Section 54-B of the Act for the land sold by the brothers of the petitioner was considered or discussed during assessment. 7. From the perusal of the reply filed during assessment proceedings and the assessment order, it is evident that there was no specific question raised with regard to deduction claimed under Section 54B of the Act. The case would have been on different pedestal if the AO during the assessment proceedings had raised query with regard to deduction under Section 54B of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ', but not the established fact of escapement of income. At the stage of issue of notice, the only question is whether there was relevant material on which a reasonable person could have formed a requisite belief. Whether the materials would conclusively prove the escapement is not the concern at that stage. This is so because the formation of belief by the Assessing Officer is within the realm of subjective satisfaction. 17. The scope and effect of Section 147 as substituted with effect from April 1, 1989, as also Sections 148 to 152 are substantially different from the provisions as they stood prior to such substitution. Under the old provisions of Section 147, separate Clauses (a) and (b) laid down the circumstances under which in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(1) had been issued. (emphasis supplied) 9. There is no quarrel with the proposition of law that the reassessment proceedings cannot be initiated merely on change of opinion. The reasons for reopening clearly indicates that the AO had reason to believe that income had escaped assessment. We at this stage are not at all suggesting that the inference drawn is correct. What is required at this stage is that the AO has reason to believe that there was an escaped assessment. 10. There is no bar that under Section 147 of the Act that the reasons to believe cannot be based upon the material already available on record. 11. The Supreme Court in Phool Chand Bajrang Lal & Anr. Versus Income Tax Officer & Anr. reported in (1993) 4 SCC 77 held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on arrived at by the Income-tax Officer and examine whether there was any material available on the record from which the requisite belief could be formed by the Income-tax Officer and further whether that material had any rational connection or a live link for the formation of the requisite belief. It would be immaterial whether the Income-tax Officer at the time of making the original assessment could or, could not have found by further enquiry or investigation, whether the transaction was genuine or not, if one the basis of subsequent information, the Income-tax Officer arrives at a conclusion, after satisfying the twin conditions prescribed in Section 147 (a) of the Act, that the assessee had not made a full and true disclosure of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
