2017 (1) TMI 726

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..... The main contention urged by the petitioners is that the reason to believe as reflected in Ext.P5 series in WP(C) No. 35020/2016 and Ext.P7 series in WP(C) No. 35054/2016 is not a valid reason to reopen the assessments. 2. A statement has been filed by the respondent controverting the stand and inter alia stating that sufficient reasons had been stated in the impugned documents for the assessing officer to believe that there is escaped turnover. 3. Learned counsel for the petitioners places reliance on the judgments in Income Tax Officer v. Lakhmani Mewal Das [(1976) 103 ITR 437], Commissioner of Income Tax v. Kelvinator of India Ltd [(2010) 320 ITR 561], Messe Dusseldorf India P. Ltd v. Deputy Commissioner of Income-Tax, Transfer Prici....

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....f income as separate independent individuals, the business activities and related accounts of both the assesses are entirely handled by Shri.John Joseph and his confidantes and key staff members Mr.K.M.Babu, Mrs.Civy Jaison etc. Smt.Ancy John confirmed the same in her sworn statement. The combined real accounts of the assessee were obtained during the course of survey. During the course of survey, evidences regarding 1) Suppression in total receipts 2) Unaccounted cash payment in the purchase of landed properties including agreements 3) Unaccounted cash receipts in the sale of landed properties including agreements 4) Purchase and sale of land in benami names of Shri. K.M.Babu and Smt.Cicy Jaison which were never reflected in actual accou....

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....assessees. Further Smt.Ancy in her statement confirmed that she is involved in farming and agricultural activities and she doesn't have any bills or evidences pertaining to the agricultural activities. It appears to me that the assessee group is showing higher agriculture income to make source for the investment activities. The assessee, who was initially co-operating with the post survey enquiries and verifications, however, later started non cooperation on an afterthought and was reluctant to divulge further details. It may be noted that regular scrutiny for AY2012-13 is already completed in the case of John Joseph under the above grounds. The return particulars of Shri.John Joseph (AY2011- 12, AY2013-14) and Smt.Ancy John (AY2011....

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.... return or such other steps in accordance with law and therefore the writ petitions itself are not maintainable for delay and laches. That apart, it is submitted that the reason stated in the enclosure clearly indicates that there is suppression of turnover which itself is enough for the purpose of understanding the reason for reopening the assessment. 6. There is no dispute about the legal position involved in the matter. Before an assessment is reopened in terms of Sections 147 and 148 of the Income Tax Act, necessarily, it is open for the assessee to request for the reason to believe. In this case, when request was made by the assessee, the reason to believe had been given. Though in Ext.P5, at para 12, the following alone has been stat....