2013 (8) TMI 958

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....ommissioner of Income Tax issued under Sec. 148 of the Income Tax Act, 1961, by order dt. 23/7/2013 - Annex.W, it was observed thus: *Inserted vide chamber order dt. 20.09.2013 "16. Having heard the learned counsel for the parties, perused the pleadings and examined the order, Annexure-B, ex-facie what is patent is that the order suffers from reasons and findings, except for drawing conclusion. 17. It is elsewhere said that recording of reasons is a part of fair procedure since reasons are the harbinger between the mind of maker of the decision in the controversy and the decision or conclusion arrived at to substitute subjectivity with objectivity. It is true that the order of affirmation of the reasons need not be by extracting th....

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....ns filed by the petitioner to the reasons for re-assessment proceedings for the assessment year 2006-07 and passed the order dt. 2/8/2013 observing that the re-opening under Sec. 147/148 of the Income Tax Act for the impugned assessment year 2006-07 is within the legal provisions envisaged under the Act as there are reasons to believe that but for the transfer of the assets of Fibres & Fabrics International Private Limited., for short 'FFIPL', i.e., its business premises, entire machinery, same business of manufacture and export of jeans and almost all employees including technical and managerial being shifted from FFIPL to the petitioner-company, coupled with the testimony of one Nagesh, said to be an employee of FFIPL, later an em....

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....ty Commissioner has applied his mind to that aspect of the matter and held that it is a question of fact as to whether there was any coercion or otherwise when Nagesh's statement was recorded which deserved to be answered only after an enquiry. 5. The further submission of the learned counsel for the petitioner that 'there are no reasons to believe' and therefore invoking the jurisdiction under Sec. 147/148 of the Income Tax Act was susceptible to suspicion, I am afraid, at this stage, is impermissible of acceptance. 'Reason to believe' does not mean that the assessing officer should have finally ascertained the fact by legal evidence. It only means, the examination that is required to be made on the basis of informat....