TaxTMI 
TaxTMI 
2012 (5) TMI 25
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....tion 147/148 of the Act on the ground that the jurisdictional pre conditions are not satisfied?" 2. As we have heard learned counsel for the parties, we proceed to pronounce our decision on the aforesaid substantial question of law. 3. The respondent-assessee is a company and for the assessment year in question, an assessment order under Section 143(3) of the Act was passed on 24th January, 2003. The Assessing Officer while passing the said assessment order had recorded as under:- "From the perusal of the balance sheet, it is seen that an addition of Rs.30,00,000/- has been made to its share capital during the year under consideration. Apart from the above, the company has also raised loan and advances from Rs.21,91,288/- to Rs.85,70,....
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....ilash Manohar Lal Manish Kumar 356- Jai Laxmi Coop Bank 89 Deepak Knits & Texturise (P) Lt. Canara Bank east of Kailash Manju Agencies 2258- Jai Laxmi Coop Bank 30.03.01 90 Deepak Knits & Texturise (P) Lt. Canara Bank east of Kailash Star Garments P. Ltd. 3150- Jai Laxmi Coop Bank 30.03.01 91 Deepak Knits & Texturise (P) Lt. Canara Bank east of Kailash Manju Agencies 2258- Jai Laxmi Coop Bank 30.03.01 These transaction pertains to the period for the F.Y. 2000-01 relevant Assessment Year 2001-02. Assessment for the Assessment year was completed u/s 143(3) on 24.01.2003 on an income of Rs.247203 and the period falls beyond four year, in which the AO cannot issue notice u....
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....ed second appeal before the Income Tax Appellate Tribunal (tribunal), which has been allowed by the impugned order dated 27th February, 2009. The tribunal noticed that the present case is covered by the first proviso to Section 147(1) of the Act and held that the re-assessment proceedings could not have been initiated by the Assessing Officer as there was no failure on the part of the assessee to make full and true disclosure. The tribunal has held that in the "reasons to believe" the Assessing Officer had not specifically mentioned that there was failure or omission on the part of the assessee to make full and true disclosure of all material facts and, therefore, the said jurisdictional pre condition was not satisfied in the present case. ....
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....n the part of the assessee to disclose fully and truly all material facts, initiation of reassessment proceedings after a period of four years would be invalid. In the case of Kaira District Cooperative Milk Producers Union Ltd. Vs. CIT-216 ITR 371, Hon'ble Gujarat High Court has held that where in the reasons recorded for initiating the proceedings u/s 147, there is no mention about the satisfaction of the Assessing Officer or the formation of belief as to the escapement of income owing to the failure on the part of the assessee to disclose the material facts necessary for assessment, issue of notice u/s 148 would be invalid." 8. We have quoted above the reasons to believe recorded by the Assessing Officer. In the underline portion/reas....
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....sized paragraph of the "reasons to believe" wherein it has been observed that the Assessing Officer had examined the information received from the Director General (Investigation). This can be and should be ascertained by referring to the reasons recorded and if required and necessary from the document/material mentioned. Further, at the stage of initiation, only a prima facie or tentative view is required and final conclusion/decisiveness is not mandated. The requirement is that the tentative view should not be based on mere suspicion. In case accommodation entries were provided, then the material facts stated by the assessee would not be true. They would not meet the condition "fully". In this connection, we reproduce the observations of ....
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....fied in a case. It has also to be shown and established by the Revenue that the Assessing Officer had duly applied his mind and reached an opinion on the basis of the information and material that there was failure or omission on the part of the assessee to make full and true disclosure of all the material facts. This aspect is required to be examined and gone into by the tribunal and only on being satisfied, if necessary after scrutinizing the record, hold that the jurisdictional pre conditions are satisfied and the reassessment proceedings can be treated as valid. When required Revenue should produce the original records before the tribunal to disclose and show that the requirement is satisfied. In the present case the tribunal has not ex....