TaxTMI 
TaxTMI 
2013 (7) TMI 537
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....y Commissioner seeking a copy of the reasons recorded by him for the purpose of issuing the impugned notices. Under communication dated 26.11.2012 such reasons were supplied to the petitioner, which read as under:" ''2. The reasons recorded for reopening the assessment is as under: On verification of the audit report for F.Y.200405, it is noticed that the assesse company has shown purchases of Rs.78,225/out of direct expenses of Rs.2,25,357/. Asset of Rs.26,47,198/were added during the F.Y.200405. Previous year liability was shown at Rs.8,45,507/which reduced during the F.Y. 2004-05 to Rs.3,50,883/hence the company has paid Rs.4,97,624/( Rs. 8,48,507-Rs.3,50,883....
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....; During the F.Y.2004-05the assessee has deposited cash in the bank account which is as under: Date Particulars Amount(Rs.) 28.06.2004 By cash 45,000 09.07.2004 By cash 5,000 06.12.2004 By cash 60,000 30.12.2004 By cash 10,000 Total.. 1,20,000 During the year the total sales of Rs.53,750/and the cash deposit of Rs.1,20,000/remains unexplained." 3. The petitioner raised objections under communication dated 22.1.2013 objecting to the reopening of the assessment. Such objections were, however, rejected by an order dated 1.3.2013. Hence this petition. 4. At the outset, we may record that the assessment for....
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....ent. The distinction is also well brought out by the statutory provisions as they stood at different points of time. Under section 143(l)(a) as it stood prior to April 1, 1989, the Assessing Officer had to pass an assessment order if he decided to accept the return, but under the amended provision, the requirement of passing of an assessment order has been dispensed with and instead an intimation is required to be sent. Various circulars sent by the Central Board of Direct Taxes spell out the intent of the Legislature, i.e., to minimize the departmental work to scrutinize each and every return and to concentrate on selective scrutiny of returns. These aspects were highlighted by one of us (D. K. Jain J) in Apogee International Limited v. Un....
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....escaped assessment, it can be said to have reason to believe that an 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. The function of the Assessing Officer is to administer the statute with solicitude for the public exchequer with an inbuilt idea of fairness to taxpayers. As observed by the Delhi High Court in Central Provinces Manganese Ore Co. Ltd. v. ITO [1991 (191) ITR 662], for initiation of action under section 147(a) (as the provision stood at the relevant time) fulfillment of the two requisite conditions in that regard is essential. At that stage, the final outcome of the proceeding is not relevant. In other words....
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....terial facts necessary for his assessment of that year. Both these conditions were conditions precedent to be satisfied before the Assessing Officer could have jurisdiction to issue notice under section 148 read with section 147(a) But under the substituted section 147 existence of only the first condition suffices. In other words if the Assessing Officer for whatever reason has reason to believe that income has escaped assessment it confers jurisdiction to reopen the assessment. It is however to be noted that both the conditions must be fulfilled if the case falls within the ambit of the proviso to section 147. The case at hand is covered by the main provision and not the proviso. 18. So ....