TaxTMI 
TaxTMI 
Reopening assessments in case of income escaping assessment.
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....dated the 27th October, 1969 (instruction No.120), the defects pointed out continued to appear in the proposals sent for reopening assessments under section 147. In this connection attention is invited to the observations of the Supreme Court in the case of Chugamal Rajpal Vs. S.P.Chaliha & Others (79 ITR 603). The defects pointed out by the Supreme Court and the defects mentioned in the Board's C....
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....me-tax Officer had reopened the assessment mentioned in the handwriting of a Clerk on a copy of the notice calling off the return of income. Reopening of an assessment without recording the reasons by the I.T.O is bad in law and therefore in all cases such reasons must be recorded in the form. (ii) Sometimes it has been found that the exact income which is believed to have escaped assessment is....
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....e notice whether the assessment is being reopened u/s 147(a) or 147(b), it is necessary that at the time of recording the reasons the Income-tax Officer applies his mind and indicates in the form whether the case falls u/s 147(a) or (b). It may be that on the facts of some cases both the sub-sections of section 147 may be applicable. If so, both the sections may be mentioned against item 7 of the ....
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....-tax Officer against item 11 of the form are mentioned in a separate sheet attached with the form so that full facts are clearly brought out. In this note the Income-tax Officer should fully bring out the reasons which lead the Income-tax Officer to the belief that income had escaped assessment and that such an escapement was due to the failure of the assessee to file a return or to disclose fully....