2010 (8) TMI 1051

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....NI, ACCOUNTANT MEMBER :- This is an appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)-II, Baroda dated 2-7-2007. 2. Ground No. I of the appeal read as under:- "1. The Learned Commissioner of Income Tax (Appeals) has erred in law and in fact upholding the Assessment reopened under section 147 of the Act. 2. Ion absence of Recording Reasons for ....

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....or reopening of assessment on 21-10-2003 :- "In this case, the return of income is filed on 9-8-2002 declaring total income at `.2, 17,074/-. On verification of the return of income, it is seen that the assessee has claimed net loss under the head "Business Income" of `.4, 39,300/- by showing sales of `.32, 000/- only. The assessee has also shown gross loss of `.81, 945/- in the Profit and Loss ....

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....Learned Assessing Officer for reopening of the assessment is not challenged by the Learned Departmental Representative. A bear perusal of the above recording made under section 148(2) shows that the Learned Assessing Officer entertained a doubt about the authenticity of various particulars of income furnished by the assessee in the original return of income. 5. Thus the assessment was reopened to....

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....ve is stronger than reason to suspect. The apex court in ITO & Ors. Vs. Lakhmani Mewal Das (1976) 103 ITR 437 (SC) has held that the powers of the Income Tax Officer to reopen assessment, though wide, are not plenary. The words of the statute are "reason to believe" and not "reason to suspect". "Belief" indicates something concrete or reliable. The belief should not be a product of imagination or ....