2017 (5) TMI 125

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....Appellate Tribunal, Lucknow (hereinafter referred to as 'Tribunal') in I.T.A. No.518/Luc/2008 regarding assessment year 2001-02. 3. This appeal was admitted on two substantial questions of law, but at the very outset, we may point out that in first question, there is minor typographical mistake and instead of section 148 of the Act, 1961, it has been mentioned as section 48 of the Act, 1961, we direct that it shall be read as section 148 of Act, 1961. 4. The substantial questions of law read as under :- "I. Whether on the facts and in the circumstances of the case, the learned Income Tax Appellate Tribunal is justified in law in holding that the Assessing Officer had no relevant material to issue notice u/s 148 of the....

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....ment. If either of these conditions is not fulfilled, the notice issued by the Income Tax Officer would be without jurisdiction. The important words under section 147 (a) are "has reason to believe" and these words are stronger than the words "is satisfied". The belief entertained by the Income Tax Officer must not be arbitrary or irrational. It must be reasonable or in other words it must be based on reasons which are relevant and material. The Court, of course, cannot investigate into the adequacy or sufficiency of the reasons which have weighed with the Income Tax Officer in coming to the belief, but the Court can certainly examine whether the reasons are relevant and have a bearing on the matters in regard to which he is required to ent....