TaxTMI 
TaxTMI 
2012 (7) TMI 659
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....er for assessment year 2003-04. 2. The petitioner, a private limited company, which is engaged in the job work of dyeing and printing of art silk cloth, filed its return of income on 30.11.2003 for the assessment year 2003-04 along with the relevant documents declaring a loss of Rs.16,41,500/-. The case of the petitioner came to be taken for scrutiny and ultimately assessment came to be framed under section 143(3) of the Act on 31.12.2004. Subsequently, by the impugned notice, the assessment is sought to be reopened. The petitioner requested the Assessing Officer to furnish the reasons recorded for reopening the assessment, which came to be supplied alongwith a notice under section 143(2) of the Act. The reasons recorded by the Assessing....
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.... the part of the petitioner to disclose fully and truly all material facts necessary for its assessment. It was also contended that according to the Assessing Officer, the assessee had understated turnover of Rs.1,53,61,157/- which needs to be investigated in depth. That for taking action under section 147 of the Act, there should be reason to believe that income chargeable to tax has escaped assessment, whereas in the present case, there no new information has been collected by the Assessing Officer and that assessment cannot be reopened for making roving inquiry or collecting new information. By an order dated 22.09.2009, the reasons came to be rejected, which has given rise to the present petition. 4. Mr. M. J. Shah, learned advocate ....
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....ment is based upon assumption as regards the production/turnover of the year under consideration and that the Assessing Officer is of the opinion that the turnover is understated and requires to be investigated in depth. Thus, what the Assessing Officer seeks to do is to make a roving inquiry and to ascertain as to whether any income chargeable to tax has escaped assessment. For taking action under section 147 of the Act, there should be reason to believe that any income chargeable to tax has escaped assessment and that assessment cannot be reopened for the purpose of making a roving inquiry or collecting information. 5. Opposing the petition, Mr. Sudhir Mehta, learned senior standing counsel for the respondent, placed reliance upon the ....
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....the assessment. 7. A perusal of the reasons recorded shows that there is nothing whatsoever to indicate that there is any failure on the part of the petitioner to disclose fully and truly all material facts. The Assessing Officer, on an arithmetical calculation of the turnover of the previous years and raw material consumed as against raw material consumed in the year under consideration, has come to the conclusion that considering the ratio of raw material consumed in the previous year and in the current year, the turnover should be higher than that stated by the petitioner. Thus, the Assessing Officer has not formed any belief that any income chargeable to tax has escaped assessment but is of the view that the turnover to the extent th....