2016 (4) TMI 254

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....s restored to the file. The restoration application, GA No. 612 of 2016, is allowed as above, but without any order as to costs. The petition is taken up for immediate consideration. This is another petition inspired by the Supreme Court judgment in GKN Driveshafts (India) Ltd reported at (2003) 1 SCC 72. Pursuant to a notice under Section 148 of the Income Tax Act, 1961 for reassessing the petitioner's income for the assessment year 2009- 10, the petitioner filed a revised return indicating a transaction with Dalal and Shah, Mumbai and Dalal and Shah, Ahmedabad. The petitioner also demanded that the assessing officer disclose the reasons on which the reassessment was deemed to be necessary. The reasons were furnished under cover of a l....

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....cquisition of the business of another firm in the names of four of the partners of the petitioner's firm. In the revised return which has been filed by the petitioner, the additional material disclosed pertains to the firm whose business was apparently acquired - Dalal and Shah. In the reasons recorded by the assessing officer in terms of the mandate under Section 148(2) of the Act, the assessing officer perceived the substantial payment in excess of Rs. 7 crore to be a gift in the hands of the petitioning assessee. In the petitioner's representation against the reasons recorded by the assessing officer filed on the basis of the GKN Driveshafts dictum, the petitioner questioned the basis of the assessing officer seeking to treat the releva....

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....amount should be treated rendered in an order of the nature that is the impugned order of August 6, 2015. Jurisdictional facts are such that would be required to be demonstrably completed before the authority in respect of a particular matter can be assumed. As to whether the relevant amount in this case should be regarded as a gift or as a loan, is not a jurisdictional fact; though it is a matter which may be covered in course of the reassessment. On a plain reading of the provision, if an assessing officer has reason to believe that some income has escaped assessment, appropriate steps may be taken for reassessment of the income for the relevant assessment year under Section 147 of the Act. The jurisdictional fact in such a case will not....