2010 (8) TMI 1051

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....a, D.R. ORDER PER N.S. SAINI, 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.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rned Assessing Officer has recorded the following reasons for 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 assesse....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ction 148 of the I.T. Act." 4. The above was the reason recorded by the 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 assesse....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hen the Learned Assessing Officer has reasons to believe and that reason to believe 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 some....