TaxTMI 
TaxTMI 
TaxTMI 
2016 (12) TMI 1558
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....r section 143(2) of the act was issued. Further notice under section 142(1) of the Act along with the questionnaire was also issued to the petitioner - assessee. 2.01. It is the case on behalf of the petitioner that during the course of the assessment proceedings, all relevant papers as well as computation of income was duly provided by the petitioner to the A.O. That thereafter the A.O. passed the assessment order under section 143(3) of the Act on 30/11/2010. That thereafter, the petitioner - assessee has been served with the impugned notice under section 148 of the Act dated 31/3/2016 by which the A.O. has sought to reopen the assessment for the A.Y. 2009-2010 alleging interalia that the income chargeable to tax for the A.Y. 2009-2010 has escaped assessment within the meaning of section 147 of the Income Tax Act. 2.02. That vide communication dated 11/7/2016 the assessee requested to provide copy of the reasons recorded prior to issuance of the impugned notice. That the respondent supplied copy of the reasons recorded by letter dated 13/7/2016. On receipt of the reasons recorded for reassessment, the assessee vide letter dated 26/7/2016 raised various objections on merits and ....
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.... escaped assessment. It is submitted that as per the catena of decisions of the Hon'ble Supreme Court and this Court, merely to carry out verification by making fishy and roving inquiry, reassessment proceedings are not permissible. 3.04. Mr.Soparkar, learned advocate appearing on behalf of the petitioner has further submitted that there is no independent forming of the opinion by the A.O. and/or any reason to believe by the A.O. that any income has escaped assessment. It is submitted that solely on the basis of information received by the investigation wing, impugned reassessment proceedings have been initiated. It is submitted that therefore, the impugned reassessment proceedings can be said to be on borrowed satisfaction of the investigation wing, which is not permissible. 3.05. In support of his above submission, Mr.Soparkar, learned advocate appearing on behalf of the petitioner has heavily relied upon the decision of the Division Bench of this Court in the case of Varshaben Sanatbhai Patel Versus Income Tax Officer, reported in (2015) 64 Taxmann.com 179 (Gujarat). Making above submissions and relying upon above decision, it is requested to allow the present petition an....
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....nion that the income has escaped assessment due to failure on the part of the assessee in not disclosing truly and fully material necessary for the assessment. 5.02. The reasons recorded to reopen the assessment are as under :- "2. Reasons for reopening of the assessment - A.Y. 2009 reg. Assessee had e-filed his return of income for the Asstt. Year 2009-2010 on 30.09.2010 declaring therein total income of Rs. 2,09,39,600/-. Subsequently, the case was selected in CASS within the meaning of section 143(3) of the act. Assessment proceedings was completed u/s. 143(3) of the Act on 30/11/2010 determining the assessed income at Rs. 2,09,60,910/-. 2. Thereafter, information has been received from the Principal Director of Income Tax (Investigation), Ahmedabad vide confidential letter No.PDIT (Inv)/AHD/CCM/Dissemination/15-16 dated 08.03.2016. On perusal fo the data supplied by the office of the Pr. Director of Income Tax (Investigation), Ahmedabad it is noticed that assessee carried out share trading through the broker, Guiness securities Limited. And as per the guidelines of the SEBI the client code of the assessee with the aforesaid broker was WW/2647. In order to verify the ....
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....n Distance Analysis or digit edit analysis utility, distance was found to be 3 and therefore, it is believed that the code is not wrongly typed and it is termed as deliberate change and establishing nongenuineness and contrived nature of the code change. From the reasons recorded, it does not appear that verification of the material on record there is independent formation of opinion by the A.O. and that any income has escaped assessment due to any failure on the part of the assessee in not disclosing truly and correct facts / material necessary for assessment. From the reasons recorded, it appears that the impugned reopening proceedings are on the borrowed satisfaction. No independent opinion is formed. On the plain reading of the reasons recorded what emerges is that the A.O. on considering the information received from the Principal Director of Income Tax (Investigation), Ahmedabad, reassessment proceedings have been initiated on the ground that the income escaped assessment. However, there is no assertion regarding the basis on which material on record, he has come to such conclusion. Therefore, the material on the basis of which the A.O. seeks to assume the jurisdiction under ....