https://www.taxtmi.com/caselaws?id=29473 A competent authority initiating acquisition proceedings under the Income-tax Act must independently form its own reason to believe and record reasons before issuing notice. Here, the authority had already closed the preliminary inquiry, later sought the Commissioner's directions on how to frame reasons, and issued the notice only after receiving those directions. That showed no independent application of mind and an impermissible abdication of the statutory function. The earlier closure also meant the same grounds could not validly support a fresh initiation. The notice under section 269D(1) and the proceedings based on it were therefore invalid and liable to be quashed. en-us Mon, 22 Mar 1982 00:00:00 +0530 Sat, 13 Mar 2010 11:37:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29473 A competent authority initiating acquisition proceedings under the Income-tax Act must independently form its own reason to believe and record reasons before issuing notice. Here, the authority had already closed the preliminary inquiry, later sought the Commissioner's directions on how to frame reasons, and issued the notice only after receiving those directions. That showed no independent application of mind and an impermissible abdication of the statutory function. The earlier closure also meant the same grounds could not validly support a fresh initiation. The notice under section 269D(1) and the proceedings based on it were therefore invalid and liable to be quashed. Case-Laws Income Tax Mon, 22 Mar 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29473