2016 (7) TMI 67

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....essment year 2008-09, the petitioner had filed return of income on 08.08.2008, declaring total income of Rs. 1,93,970/- . Such return was taken in scrutiny by the Assessing Officer who framed assessment under section 143(3) of the Income Tax Act, 1961 ('the Act' for short) on 30.08.2010. To reopen such assessment, the Assessing Officer issued said impugned notice. He had recorded following reasons for issuing the notice. "This case is received on transfer from ITO, Ward 3(3)(4), Surat wherein report on the FIUIND reference STR No.1000000768 in the case of Gem Traders of the ITO(Inv), Surat was received on 18.03.2015. In the report, it was mentioned that commission u/s. 131(1) of the Act in the case of M/s Sai Exports was issued to ....

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....Assessing Officer forming a reason to believe that income chargeable to tax has escaped assessment, additional requirement to be satisfied would be that the same was due to the assessee failing to disclose truly and fully all material facts for such assessment. 6. In this background, we may peruse the reasons recorded by the Assessing Officer minutely. As per the reasons, reference was made regarding the gems traders. It was reported that in case of M/s. Sai Export, notice under subsection (1) of section 131 of the Act was issued to verify the bank transactions made by the said proprietary concern with Ing Vysya bank at Nariman point branch, Mumbai. Such notice was issued at the address mentioned in the bank statement. It was however state....

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....explain such bank entries were not known. The income tax authorities therefore could not verify whether transactions through such bank account were duly reflected in the books of accounts. 9. In terms of subsection (1) of section 131 of the Act, the Revenue authorities undoubtedly have the powers of discovery, inspection, enforcement of attendance, compelling production of books of accounts and other documents and to issue commissions same as those vested in the court under the Code of Civil Procedure. Under section 133 of the Act, the Revenue authorities also have wide powers of requiring any person to furnish information concerning the tax implications. However, before reopening an assessment which has been previously framed after scruti....