2012 (7) TMI 801

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....at the jurisdiction under Section 148 was improperly assumed, has been challenged.   2. Learned counsel urges that a facial reading of the satisfaction recorded by the authority under Section 148 shows that it was flawed and that there is complete non-application of mind. It was submitted that very evidently, the concerned officer did not take into consideration the returns which had been previously filed by the Assessee. 3. Learned counsel took this Court through the reasoning of the Tribunal as well as that of the CIT (A) and submitted that substantial question of law is whether under the circumstances, there was application of mind as warranted by Section 148, by the AO. 4. The Tribunal's reasoning in allowing the Revenue's appea....

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....tive as against the scanty reasons recorded in the case of Signature Hotels P. Ltd. (supra). This is not the case in the present appeal. Therefore, in our considered opinion, the assessing officer had applied his mind while recording the reasons for re-opening of the assessment under section 147 of the Act. Moreover, the information is specific giving the details of the branch, the name of the account holder and the date of cheque and cheque number. Hon'ble Supreme Court in the case of Phool Chand Bajrang Lal Vs. ITO 203 ITR 456 (SC) has held as under :- " Since the belief is that of the Income-tax Officer, the sufficiency of the reasons for forming the belief is not for the court to judge, but it is open to an assessee to establish that t....

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....c information was received by the assessing officer through the office of the Commissioner of Income-tax that the assessee had received amount of Rs.1,60,000/- from three persons through bank accounts. Under the law, there is no requirement that the assessing officer should verify the information before forming the belief that income had in fact escaped assessment and only then he can resort to proceedings under section 148 of the Act. What is to be seen is whether there is nexus with the information and formation of belief by the assessing officer while issuing notice under section 148 of the Act. In the case before us, the assessing officer had recorded detailed reasons in order to arrive at the conclusion that provisions of section 68 ar....