2009 (12) TMI 214

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....Sherin for the respondent. JUDGMENT The judgment of the court was delivered by 1. C. N. RAMACHANDRAN NAIR J. - The appeals are filed by the Revenue against the orders of the Tribunal holding that reassessments completed in the assessee's case under section 147 of the Income-tax Act, 1961, were invalid for the assessment years 1998-99 and 1999-2000 as time barred. It is the finding of the ....

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.... the first year and in the next year, he has attended 1147. As against so much of the charges so collected, the assessee has returned only a meagre income of Rs.1,13,830 for the assessment year 1998-99 and Rs.1,30,800 for the assessment year 1999-2000. Based on the information collected from the hospitals, the Assessing Officer estimated the income by applying the minimum rate charged for each sur....

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....eve' in section 147 would mean cause or justification. If the Assessing Officer has cause or justification to know or suppose that income had escaped assessment, he can be said to have reason to believe that income had escaped assessment. The expression cannot be read to mean that the Assessing Officer should have finally ascertained the fact by legal evidence or conclusion. What is required is 'r....

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....him. On comparing the income received and the income returned by the assessee, the Assessing Officer noticed that the assessee has disclosed less income. He, there fore, reopened the assessment under section 147 and issued revised assessment. It is also to be noted that after reopening the assessment, the Assessing Officer collected further information to complete reassessment which is also permis....