2017 (1) TMI 1040

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....n 148. She refers to the reasons given for invocation of Section 148. She submits that, the reasons are vague. The allegation is of receipt of Rs. 2.20 crores approximately in the relevant assessment year. She submits that, the details of the persons making the funds available are not specified. She submits that, it is not a case that, the assessing officer speaks of one transaction. In view of the vagueness of the charges against the petitioner, the assessing officer ought not to have formed an opinion that there was an income escaping assessment on the materials made available to him. Since such materials are available he ought not to have invoked Section 148. In support of the contention that the assessing officer is required to form ....

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....did not submit the details of the transactions at the time of the order of assessment and, therefore, the assessing officer is required to have a relook into the same. He further submits that, the disposal of the objections cannot be construed as an order of reassessment. The petitioner can still demonstrate that, the assumptions made by the assessing officer are incorrect by producing relevant records. I have considered the rival contentions of the parties and the materials made available on record. The assessing officer in the present case seeks to invoke under Section 148 after four years from the relevant date of the assessment. The assessing officer has forwarded the reasons for invoking Section 148 to the assessee. The reason....

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..... Sarthak Securities Co. (P.) Ltd. (supra) holds that, the formation of belief is a condition precedent as regards the escapement of tax pertaining to the assessment year by the assessing officer. The assessing officer is required to form an opinion before he proceeds to issue a notice. This view can be found in paragraph 15 of the report. It goes on to say that, conclusive proof is not germane at this stage for formation of opinion. However formation of belief must be on the base or foundation or platform of prudence, which a reasonable person is required to apply. Chhugamal Rajpal (supra) holds that, when a notice under Section 148 is not specific, it is required to be set aside. In the present case on receipt of information that....